Brookson responds to contractors' comments

The new Managed Service Company rules have caused disruption and uncertainty for many contractors and those companies which provide services to small firms. Part of the problem has been that they were introduced within such a short time frame and took effect before they had passed through the Parliamentary process where they could still be amended.

This has led to uncertainty and frustration, which has sometimes been directed at the companies who have been providing services and support. Martin Hesketh, managing director of Brookson, who provide accountancy and tax service to freelance professionals, has offered to respond to some recent comments on UKTECH.

Martin Hesketh writes:

"The last few days have seen a number of negative comments by contractors regarding Brookson's service on this site, and I wanted to provide a formal response.

Martin Hesketh "The Budget announcement earlier this year has forced our industry through unprecedented levels of change in a very limited time period, which has forced us to make some very tough decisions on the way forward. Faced with these circumstances, many of our competitors have chosen the easy route - some have simply moved their members into an Umbrella model, others have continued to operate non-compliantly, exposing their customers to significant additional risk. Some have stopped providing services at very short notice, leaving existing customers high and dry with no support through this difficult time.

"As always, Brookson's approach to these changes has been both diligent and rigorous. We are determined to help contractors work fully compliantly in the most beneficial way for their individual circumstances. We believe that this means adapting our whole business back to its historic core – providing accountancy services to support our clients' limited companies. This approach involves fundamental change both for our members and for our business.

"As you would expect, part of this process has also involved ensuring that the comprehensive accountancy services that we will provide do not fall within the new MSC legislation. We have worked extensively with our external tax advisors, and other relevant stakeholders, to be confident that this is the case. We have an unequalled compliance heritage in this industry, illustrated by our IR35 process agreement with HMRC, and we are confident that this continues in the new world.

"Clearly, given the scale and pace of these radical industry changes, the transition period has not been without difficulty, and we recognise that we have struggled to cope with the unprecedented pressure on our telephone lines and email systems. I very much regret any negative impact this has had on individual members. However, I am hopeful that the dust is starting to settle now, and we are now able to respond to enquiries quicker.

"I am pleased to say that over 8,500 contractors have now set up their own individual limited companies and have engaged Brookson to provide our comprehensive accountancy services to these companies. With regards to those who are still not up and running, we will be in touch with them in the next couple of days to update them on their individual circumstances as best we can. Unfortunately, under the new legislation, we are not able to get directly involved in the process of setting up bank accounts and distributing cheque books, but have to leave that with the bank. I recognise that these delays are causing frustration for some of our members.

"I am confident that, working with our members and staff, we will see this difficult period through together and will, once again, be able to provide the level of service that we have always been recognised for."

Martin Hesketh

Brookson