JSA Enters Voluntary Arrangements Owing £Millions

10/2/2010

In December 2009, the umbrella company JSA Services Limited entered into voluntary arrangements with creditors, owing £11.3million in total debts with £10.6million owed to HMRC relating to PAYE and National Insurance Contributions. Other commentators have raised serious doubts about JSA's continuing ability to pay their contractors and the possibility that HMRC may later seek to claw back any unpaid taxes from contractors or their recruitment agencies. If you know any contractors or recruiters currently using JSA Services who have such concerns please advise them to speak to planIT about their best options going forward.

Albany: Another High Profile Umbrella Under Question

Last month Albany announced that as a result of losing its financial backing it would be restructuring. Subsequently there have been reports from contractors of non- or late payments of monies owed, while recruitment agencies are still being invoiced against contractor's work. Some commentators have raised doubts that Albany may fall within the MSC legislation leaving agencies which referred contractors to them in HMRC's firing line via the third party debt transfer provisions within the legislation. The basis of these claims is that Albany's contractors are paid as self employed and treated as company directors. Again should you know any contractors working through Albany or recruitment agencies which have been referring contractors to them, please advise them to get in touch with planIT.