Revenue warns MSC contractors of personal liability

Fresh advice for contractors concerned about the MSC legislation and how it might apply to them in the latest high-profile managed service companies case – or others yet to be opened – has been provided by HM Revenue & Customs.

This distinction is important as, under the Tax Charter, HMRC are not allowed to publicise an ongoing case, or disclose the affairs of individual taxpayers or companies – including staffing firms.

Still, asked how a concerned contractor might respond, an HMRC spokesman said: “If you are in any doubt whether you are affected…you should check with your accountant or the adviser who arranged for the company to be set up. 

“Alternatively, you can seek independent advice. If you are affected by the MSC legislation and your company fails to apply it, you could be held personally liable for the company’s debts."

The spokesman confirmed that HMRC has a duty of confidentiality to its customers, but reminded that FAQs from individual workers on the MSC rules were available on its website and may prove helpful.

Editor's Note: Further reading here on Managed Service Company legislation.