Chancellor mirrors Professional Passport's compliance stance
George Osborne confirmed his concerns over the growing use of employment intermediaries to disguise employment and circumvent employer responsibilities in the Autumn Statement.
Professional Passport raised and took action on the same concern earlier this year.
In June Professional Passport took the decision not to approve any provider who had a self-employed model fronted by a limited company payment intermediary or used LLP's as part of their service offering.
The company state it believes these models were, in many cases, being promoted as avoidance vehicles and saw them as high risk.
It says the worst examples there are real risks that recruiters could find themselves with debts resulting from enforcement of the Managed Service Company legislation.
Professional Passport's recent response to the House of Lords Select Committee on PSC's also highlighted these arrangements as a major threat to compliance.
The company states it is pleased HMRC have recognised the threat and acted quickly to close this down with Professional Passport leading the drive for compliance across the sector.
The company's understanding is that this will not impact responsibly run umbrella providers who operate aligned to our operational standards or accountancy service providers supporting PSC's. They also believe that CIS is outside of this as it has its own defined structure in place already.