1st Option Group launches “Lite” service for displaced workers

1st Option Group launches “Lite” service for displaced workers

In anticipation of the arrival of the Agency Workers Regulations in 2011, financial management group 1st Option has introduced a new Limited Company support service that targets and is appropriate for lower to middle earning contractors.

1st Option has traditionally supported high-end freelance professionals, advising them in the administration and planning of their own limited companies - helping them to achieve their financial objectives, compliantly, and with maximum tax efficiency.  These services have usually been most appropriate for professional freelancers earning at least £20 per hour.

The new Agency Workers Regulations has resulted in a demand for limited companies from workers who earn lower rates. Many may have been using alternative arrangements such as umbrella companies but increasingly these workers are seeking to switch to running a personal service company and demonstrate they “are in business on their own account”. In addition many end hirers are increasingly keen to engage with contractors that are out of scope of the regulations and consequently the trend is for contractors to ensure that they remain “marketable” by incorporating their own businesses.

From the 1st March 2011 1st Option announced its “Lite” offering; a new type of limited company service aimed specifically at more modest earners within the contingent labour market. Key features of the new service are reduced Company Formation Fees; basic accountancy support services; annual accounts preparation and filing - all costing a mere £16.66* per week.  Customers also have the option to add additional support services, which ensures that the Limited Company services can be tailored to the exact specification of each customer.

Commenting on the new service, 1st Option Managing Director David Mount said: “The introduction of the Agency Workers Regulations posed a real problem for contingent workers that earned more modest rates since traditionally they did not use personal service companies. With end users concerned by the need to equalise its contingent labour, lower end workers can take advantage of this service, maximizing the chances that they will fall outside of the legislation’s scope and remain attractive to recruiters and end clients.”

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*Price excludes VAT