Income Shifting Legislation

Independent Contractor Services
Free IR35 & Contractor Tax Review
Call free 0800 195 3750 | Email

Treasury to compromise on MSC tax laws?

Posted Mar 12, 2007

The Times has published a news article which suggests that the Treasury may be happy to compromise on the timetable to implement the Managed Service Company legislation:

"The Treasury has sought to compromise on a key plank of proposed measures in the Budget on March 21 to tighten income tax laws for contractors and freelancers.

It is understood that Gordon Brown has heard submissions from the financial and support services industries protesting that the proposed law could render “third parties” liable for contractors’ tax debts."

You can read the entire article here.

ATSCo recently submitted its response to the MSC proposals - one of its main criticisms was the suggested speed of implementation - see this extract from a recent news release:

"There are many logistical for employment businesses in implementing these changes, not least because considerations with respect to third party liability have not been finalised."

Please scroll down for related articles

Contractor Services


Related Articles

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 approval schemes
A legal view on recent speculation that a managed service company accreditation scheme is under consideration by HMRC.

Managed service company 'audit scheme' being considered
HMRC is considering implementing an 'audit scheme' for managed service company providers. News of the proposed scheme has received a mixed response from within the contracting industry.

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

IT Contractors vindicated as MPs criticise Managed Service Company legislation
Opposition MPs voiced their criticisms of the new tax rules for Managed Service Companies (MSCs) during a Commons debate on the Finance Bill this week.

MSC Legislation - Ordinary limited company contractors unaffected
The PCG has assured the IT contractor marketplace that ordinary limited companies are unaffected by the new tax rules on Managed Service Companies

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.

Qdosconsulting