In the Pre Budget report 2006 the Government announced that it would consult on an action to tackle Managed Service Companies (MSC's). The Chancellor has finally made his intentions clear that he is clamping down on Composite Companies.  

Why? Because contractors who use composites companies are seen to be avoiding tax. 

How? A composite company pays each contractor a salary at the national minimum wage. The contractor pays income tax and employee’s NIC on this salary and the composite company pays employers NIC’s. The remaining salary for the contractor is subject to corporation tax as the profit of the composite company and then paid out as dividends to the contractor.

Green Lantern 35 welcomes the budget as we do not operate as a composite company and the budget will result in a more level playing field for compliant businesses like Green Lantern 35 Limited . 

Please note: you do not need to take any action.