Five temporary workforce businesses wound up

A total of five temporary workforce services companies based in Birmingham have been wound up.

KSA Associates (UK) (KSA), Ezybackoffice (EZY), Temp Payroll Services (TPS), A & T Active Recruitment (UK) (A&T) and B Diminish (BDL) were wound-up by the High Court following an investigation by the Insolvency Service.

A&T are accused of acting as recruitment agents for temporary workers under a contrived structure designed to take advantage of tax benefits. Contractors were given the option to be directly employed by them or to provide services through their own PSC.

A court has found that there was a severe lack of transparency in the scheme that was being operated by the companies.

This included the temporary workers, for many of whom English was not their first language, being appointed as directors and/or employees of the PSCs having no meaningful knowledge of the companies and their directorships. Some of the workers were completely unaware that they'd be appointed as directors.

Chief investigator at the Insolvency Service, Alex Deane, said: "This was a complex enquiry into a sophisticated scheme involving systematic abuse of the corporate regime and where the named directors of the PSC companies often had no idea of the scheme they were involved in.

"Those operating such schemes should be aware that the Insolvency Service will intervene when appropriate to stop them."

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