managed service companies (pls help!)

[scruffy]

Some folk work self employed via 'managed service companies', if my lady worked for the place she works in 'normally' she would only get the equiv of half her wages - these companies allow her to claim travel, tax breaks etc and do quite nicely (twice my wage!!) - now i know these companies do sod all for generous% cut and may not be the most altruistic of bodies but...

mrs scruffy has received a letter;

'...in Dec 06 the chancellor announced plans to address...'managed service companies'... new laws come into effect.. so we've moved the goal posts... there are new options...

i. a service to allow mrs scruffy to have her own company and outsource the "complex" administration and accounting functions - a personal service company... (same gravy train to me)

ii. umbrella company - full tax and NI deducted from earnings with allowable business expenses offset against taxable...

it would seem she's lost more of her earnings with this letter...

1. is the Govn. actually sqeezing out the charlatans;

2. are these guys trying to make a quick killing, at the expense of their 'workers'...

3. is the 'law' real?

please help me understand!! these MSC's sound like dodgy football agents!!!

thank you!!

Edited by scruffy on Saturday 3rd March 12:05

[scruffy]

Bump - any thoughts?