Budget Note - MSC Legislation Changes - 21/03/07
Aside
from the increases in beer, wine, cigarettes and duty on most polluting cars,
the second most important issue for you will obviously be the MSC legislation
update.
The
Government has confirmed that legislation will be introduced to achieve the
objectives set out in the consultation document. But it is responding to key concerns
raised during the consultation and will:
-
strengthen the
definition of a Managed Service Company (MSC) to give greater clarity and
certainty;
-
amend the debt
transfer legislation to make clearer that those simply in receipt of the
services of a worker operating through an MSC are not within its scope;
and
-
delay the
application of the debt transfer legislation to third parties (other than
MSC scheme providers, and directors, office holders or associates of the
MSC) to allow more time to make the necessary changes to their operations.
Despite
earlier Treasury denials that there would be any delay the fact that there is
delay in the third party liability for agencies until January 2008 is clearly
good news for most agencies. However,
those regarded as associates of an MSC provider could still remain liable for
debts arising from August 2007.
IMPORTANT SEMINAR - we shall be holding a seminar on the issues that arise - see "AVOIDING LIABILITY FOR MSC CONTRACTOR TAX".The seminar on 3rd April was extremely well-received. Bookings are provisionally being taken for a second seminar on 25th July.
DOWNLOAD THE CONSULTATION DOCUMENTS:
1. Latest Download 23/03/07 - Chapter 9 ITEPA - Meaning of "Managed Service Company"
– Download the Document
2. Summary of Consultation Responses
– Download the Document
3. Tackling Managed Service Companies
– Download the Consultation
4. Transfer of MSC Debts
– Download the Consultation
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