What is the position of recruitment agents with regards to the new legislation?
Recruitments agencies insist they should not be liable for outstanding tax owed to HMRC by contractors. They say this will cost them millions of pounds. The Association of Staffing Companies (Atsco) plans to protest against the rules to make a third party liable from April 6th, even though they are not responsible for the managed service schemes that many contractors sign. Atsco proposals include drawing up a list of recruitment firms which have carried out reasonable checks and therefore should not be held liable for unpaid taxes owned by contractors.
