Some managed service companies (MSCs) have been attempting to get round tax rules by claiming they are accountants, Accountancy Age reports.
There is currently some confusion over how the effect of new legislation designed to stop contractors avoiding tax, and the "composite" companies are trying to exploit a loophole.
By calling themselves accountants, just because they employ an accountant, the MSCs are attempting to exempt themselves from the new laws.
However, Matthew Brown of managed service and umbrella company provider Giant Group said: "Contractors should disregard claims made by some specialist providers of services to one man limited companies that membership of a professional accounting body exempts them from this legislation.
"All specialist providers of services to one man limited companies are caught without exceptions. Contractors' only option is an umbrella company."
Meanwhile the Professional Contractors Group said that the new tax rules on MSCs would not affect ordinary limited companies.
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