Parasol Group, which provides payroll services and works with 2,500 recruitment agencies, has undergone a management buyout that values the company at £24m. Existing non-executive directors, who were shareholders, are leaving and selling their stakes. Current managing director Rob Crossland, who founded the business in 2000, remains as a major shareholder and in operational control of the company. Two non-executive directors will join from Inflexion Private Equity, which is putting up most of the money for the deal and acquiring a majority stake. Anita Whittle joins the board as finance director, having previously worked at Lastminute.com and Littlewoods/ShopDirect. The deal sees some of the senior management acquiring a stake. The majority of agencies working with contractors require to be invoiced using a limited liability company, such as Parasol. Mags Rivett, Parasol’s marketing manager, said the company was different from the likes of “composite” companies such as Brookson and Gabem. In July, Gabem lost its CIS5 card status, which had allowed its contractors to be paid without making the same tax and national insurance contributions required for a normal pay-as-you-earn employee. Crossland said: “The primary consideration when researching which umbrella or composite limited company to chose should be legal compliance, and not simply the temptation of a few extra pounds in net pay each week. After all, the wrath of an Inland Revenue investigation could far exceed any net pay advantages.” Warrington-based Parasol claims to mitigate the risks of tax liabilities by acting as the contractor’s employee.