Income Shifting Legislation

Calls for compliance after agency faces large HMRC claim under MSC rules
A contractor services organisation has called on recruitment companies to make sure they are compliant with industry legislation, following news that one agency and its director are facing a large Transfer of Debt notice under the Managed Service Company rules.

Most contractors not confident of Managed Service Company rules
A new survey suggests that less than a quarter of contractors polled felt confident that they were operating within the Managed Service Company rules.

Leading contractor accountant confirmed as "not caught" by MSC legislation
One of the UK's leading contractor accountancy firms says it has become the first to be confirmed by KPMG as not being caught by the controversial Managed Service Company legislation.

Recruiters warned to "take care" when advising contractors
The REC has warned recruiters and other third parties (such as the end-users of contractors) to get their house in order if they want to avoid unwanted tax bills.

Managed Service Company Guidance Note
HMRC have released a guidance document on the managed service company legislation. Includes indicators of whether a service provider may be an MSC provider.

Contractors feel 'picked on' over MSC Legislation
Most contractors think that the impending legislation to effectively outlaw Managed Service Companies is unjustified and that it reflects an overall distrust of the self-employed by the British Government

Managed Service Companies - How to recognise an MSC Provider
An overview of the Managed Service Company legislation and how it applies to contractors. How to recognise an MSC provider.

Chancellor provides definition of a "Managed Service Company"
Details of the law that defines Managed Service Companies (MSCs) and explains how they will be penalised under the new tax legislation, have finally been obtained.

Managed Service Company Contractor Calculator
A Managed Service Company Legislation Calculator has been launched to help UK contractors work out whether they will be affected by forthcoming changes to tax legislation due to be announced in the Budget today.

Treasury to compromise on MSC tax laws?
The Times reports that The Treasury may compromise on the date the "third party rule" element of the MSC legislation will take effect.

Company registrations soar ahead of MSC tax law
As the Managed Service Company legislation looms, the FT reports that company registrations have doubled as contractors aim to escape the Government's latest tax rules.

Calls for MSC legislation to be well targeted
ICAS has called on HM Treasury to ensure that the proposed new legislation to combat tax avoidance by 'managed service companies' should be narrowly focused on those guilty of abuse.

PCG submits formal response to Managed Service Company Proposals
The PCG has submitted its formal response to the Governments Managed Service Company (MSC) proposals.

Umbrella Companies - Expenses, Dispensations and Assumptions
There appears to be some confusion within the freelance industry with regard to the proposed MSC Regulations and if they apply to Umbrella Companies who have an HMRC Dispensation to pay expenses.

To switch and how to switch? – The ‘Controlling’ influence
Gordon Brown's intention to crack down on Managed and Composite Service companies has been well reported within the contracting market, but if you are working through a company which falls under this definition do you really know what to do?