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MSC legislation predided to hit casual drivers

12th July 2007, Page 9
12th July 2007
Page 9
Page 9, 12th July 2007 — MSC legislation predided to hit casual drivers
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UK DRIVER HIRE, which supplies permanent and temporary transport workers, predicts that the Managed Service Company (MSC) legislation will create a more level playing field, though some drivers will lose money Temporary drivers were previously able to claim they were self-employed through an MSC which gave them a tax advantage (an MSC is a form of intermediary company through which temporary workers provide their services to clients). The MSC legislation will force these workers to pay the same amount of tax as other drivers — the government claims MSCs were costing the UK more than £300m a year in lost tax and national insurance contributions.

Driver Hire chief executive Chris Chidley says:"By removing this tax anomaly it creates a level playing field for employment businesses," A Driver Hire spokesman adds: In the past, MSCs were able to undercut us. Nobody was doing anything wrong. but from our point of view things are more even now. Obviously we aren't pleased about those that will lose money through this."

Driver Hire is launching a campaign to highlight the effects of the MSC regulations. Chidley explains: "We felt it was likely that a lot of transport users are unaware of these changes or their implications."

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People: Hire, Chris Chidley

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