December 2006:
The 2007 Budget is set to change the way in which MSC's and PSC's operate, and will almost certainly affect the way in which contractors are treated by the Inland Revenue. Maxim Finance are working with others in the industry to understand these implications and work with the Inland Revenue in applying safe and sensible changes to HM Treasury policy where this relates to Contractors and Freelancers.
Note: It is safe to assume that these changes, in whatever shape they take, will affect Contractors; please take this into consideration before making decisions on who you use.
April 05 2007:
Following the Budget announcement, we can now detail the effect that this will have on MFL and your position as a contractor. The document is intended as a guide and should allow you to decide on what you need to do and when.
It is intended that these three should be read by any contractor who is concerned over their position regarding what the new legislation will mean and what impact it has on their contract, income and legal position. The second document is in two parts 1) Legal Position, 2) Income (differences from 6th April 2007). The text in Blue is taken directly from the paper published on budget day. For those of you who understand the legalese used by the Treasury, enjoy the "Tackling MSC's document", for those of you who want it condensed into specifics please see the other two.
April 10 2007:
Agency information:
While we cannot anticipate the full impact on our business model with the forthcoming changes we would like to make it clear that our scheme operates legally under the new legislation, and is not considered to be a tax avoidance/evasion mechanism. Our model is a simple one and only provides contractors with government approved values for recovery of legitimate expense claims clarified in advance with the Inland Revenue.
Maxim have developed a rescue package in case contractors need to be moved quickly where through no fault of their agency, they may be in a precarious position as this legislation is invoked as described by the Treasury.
- Tackling MSC's (The official Treasury document)
- MFL Summary Pre Budget
- MFL Summary Post Budget
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