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Managed Service Companies

Volume 459: debated on Tuesday 1 May 2007

To ask the Chancellor of the Exchequer (1) if he will publish the research which led his Department to conclude, in “Tackling Managed Service Companies” of December 2006, that there are 240,000 workers employed by managed service companies; (134758)

(2) if he will place in the Library a copy of the research that led him to conclude in the Red Book 2007 that the measures on managed services companies set out in Schedule 3 of the Finance Bill 2007 will yield £350 million to the Exchequer in 2007-08, £450 million in 2008-09 and £250 million in 2009-10.

The Government set out their analysis of the problem of workers operating through Managed Service Companies in the consultation document “Tackling Managed Service Companies”. This was published at the 2006 pre-Budget report. Evidence was gathered from a wide range of businesses and other interested parties during the consultation process. This evidence was incorporated into the regulatory impact assessment published alongside the Finance Bill and set out in “Tackling Managed Companies: summary of consultation responses”.