UTT : MSC Judgement - HMRC Win

[eazy]

MSC : UTT HMRC Win
http://www.bailii.org/uk/cases/UKUT/TCC/2018/10.pdf

Article on AccountingWeb
https://www.accountingweb.co.uk/tax/...rm=Read%20more

The MSC legislation includes an exception which states that those who are merely providing legal and accounting services in a professional capacity cannot be MSC providers. HMRC claim that this exemption is only available to those who are professionally qualified and registered with a regulatory body (I wonder why the legislation does not simply say this).

The MSC legislation also includes corporate and personal debt transfer provisions which are wider than any other piece of tax legislation. These impose potential tax liabilities on the MSC itself, its directors, the MSC provider and its directors, or on any other person who has even indirectly encouraged the use of the MSC. There is a recipe for a catastrophic and unexpected tax liability to hit the accountancy profession and those working within it.

[Fred Bloggs]

And there in a nutshell is the exact reason all the composite company providers all suddenly, over night, became accountants. Just one point though - I believe you can style yourself and your business as accountants with no experience, qualifications or professional affiliation. What you CANNOT do is call yourself a Chartered Accountant without meeting those criteria. So I am not quite sure why the post above is worded the way it is.