The Pre Budget Report

We have now had the opportunity to consider the impact of the pre-budget report attack on Managed Service Companies (MSC) and are now in a position to advise you of the alternatives you will have should these proposals become law on 6 April 2007

The following are the options you have available to you:

1. The formation of a new Limited company with yourself as company director and having its own unique company bank account.
2. Trade under the proposed new legislation and have to account for full PAYE and National Insurance deductions on the whole of your contracting income with limited allowance for business expense.

We will not allow you to trade through your existing ACC Company after 5 April 2007 if these proposals become law. We will further contact you after the budget on 21 March 2007.

Our sister company J M Taylor Limited has been providing Accountancy Services and Taxation Advice for over 25 years and can, on the formation of a new limited company, tailor an accounting solution to your particular needs.

If you wish us to proceed in forming a new limited company to trade from 6 April 2007 please complete, sign and return the attached form.

If you have any queries please do not hesitate to contact me.

Robert Chalmers
Enc