The recent 'Managed Service Company' (MSC) legislation caused much confusion over whether agencies can refer agencies to umbrella companies.

HM Revenue have confirmed that umbrella companies are not caught by the MSC or 'IR35' legislation - click here for details.

In fact there is a definite advantage for agencies that adopt an approved list of compliant umbrella companies:

• Continuation of employment to protect contractors previous and future travel claims
• Provide a varied complaint option so that contractors have a choice
• Contact iBalance/Manson Boxa for assistance on verifying umbrella companies
• Problems with forcing contractors to switch employment with umbrella company

See our compliance page for full details of how iBalance provides a fully-compliant contractor payment service.