“In creating a new class of company, the managed service company, and the catch-all definition of a managed service company provider combined with the debt transfer provisions make contracting with all but a few genuine personal service companies a high maintenance, high risk policy for any recruitment business and its end client.

The bright spot has been the endorsement by HMRC of the PAYE Umbrella solution.”
Ross Baker
Group Financial Director

Response

OrangeGenie intends to withdraw its GenieSpirit service from the market; the service supported contractors operating through their own limited company.

Although the service has been in the market for over 5 years, and was not an MSC, we believe that under the new legislation we could be classed as an MSC Provider posing a significant and unacceptable risk to the Recruitment Agencies we serve.

We will transition those clients to our PAYE Umbrella or help them find a suitable firm of accountants who will not fall under the definition of MSC Provider.
Chris Graham FCIPD
Group HR Director

OrangeGenie controlled document – Budget Update – April 2007 – issue 1.1
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