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The further guidance points out that:
MSC Audit Standard
There are no plans for HMRC to provide an accreditation scheme for Service Providers. However, HMRC is actively considering the development of an Audit Standard. Such a Standard would be published on HMRC’s internet and would enable a suitably qualified person, not associated with the Service Provider, to review a Service Provider’s business model using the Audit Standard. This would determine whether the Service Provider’s client companies were MSCs or not. If such a review concluded that the companies were not MSCs, the Service Provider would be able to state that publicly.
The intention is that such an Audit Standard would provide legal certainty for Employment Businesses.
Officials emphasised that development proposals are at an early stage and there are a number of issues to resolve before a final decision is made.
Workseekers providing their services through companies
Provided that the Employment Business has not, since April 6, 2007, been directly or indirectly involved in the workseeker obtaining the company, then the Employment Business will not be liable for any PAYE or National Insurance debt under the transfer of debt provision should it subsequently transpire that the workseeker’s company is a Managed Service Company. In practice this situation is most likely to occur where a workseeker who already provides their services through a company approaches an Employment Business.
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Current guidance will be updated shortly. HMRC also proposes to publish further guidance in November to help Employment Businesses mitigate their risk where they use Preferred Supplier Lists.
Further information
Shout99 has followed the MSC proposals in detail. For further information see the Political News section.
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The Editor
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