Brookson Statement

Brookson, one of the leading providers of accountancy, tax advice and other support services to contractors, has welcomed the HMRCís proposal to explore the possibility of publishing an Audit Standard for the industry.

Potentially, certain external bodies applying the Standard would be able to determine whether a service providerís business model would or would not result in client companies being Managed Service Companies.

Martin Hesketh, managing director of Brookson, comments ìThis is a very positive move for the industry. Brookson has always supported the Governmentís attempts to ensure that service providers are acting responsibly and compliantly. The HMRC published guidance notes, released in July this year, which was a positive step towards addressing some of the confusion that remains within the industry after the Budget announcement. However, service providers and agencies must be proactive in ensuring they are operating within the legislation.

ìAll providers of accountancy or umbrella services must undertake a diligent and rigorous review of all the legislation and guidance relevant to the contractor market to ensure compliance. Contractors must take time to both understand the issues and how their service provider addresses these issues.

ìShould HMRC bring in an Audit Standard, it could provide an independent, objective view of a businessí compliance from a recognised third party. With the right process in place, such an audit could provide the desired clarity for all involved; service providers, contractors and recruitment agencies. It could be a very effective mechanism for preventing service providers from falling into a non-compliant trap, protecting contractors and effectively removing any transfer of debt risk for recruitment agencies. That said, there is clearly quite some work for HMRC to do before such a process is close to being implemented.î