MSC April Back Dating

[Ivor1]

Anyone heard or know anything more about how likely, and if at all the IR will back date tax owed due to the MSC changes in April. A comment made on the news section of the site today was,

'And she's worried that those affected could be wide ranging, particularly as liability for debts to the Treasury may well be transferred to the intermediaries upon default. Including, possibly, to any agent in the chain'.

The word debt again anyway, Im sure alot of people are going to say 'well you deserve it', but I know there is ALOT of people out there thinking the same thing and are in the same boat. I'm not hopeful but just may be...

[Newby]

I haven't heard anything about back dating the tax. They are pretty clear that if you continue to work through someone running a managed service company(that continues to operate the same structure- I cannot see them not changing can you) then the liability for the tax will be transferable to the third parties. January 31st I was told was when the transfer of liabilty was being released in a document.

So if you are in a managed service company structure after april 07 then you, your agent then your client are all available to HMRC for collection of unpaid taxes. This would appear to provide the same issue for a pimp/agent as a sole trader would. If you are a sole trader and you work through an agent and dont pay your taxes then HMRC can claim this from the agency.

My reading of the legislation is that this will not apply if you run your own ltd.(so your agent can take a sigh of relief unless you intend to work through a managed service company who pays minimum wage/expenses after april 07)

Hope this Helps.

[DaveB]

As I understand it they can only back date it if it is as a result of reinterpretation of pre-existing legislation and even then it can't be back dated beyond the date the original legislation was passed. They may be other statutary limitations but I can't be arsed to look it up right now.

Since this is entirely new legislation, it can't be reinterpreted untill it has come into effect anyway and so cannot be back dated.

[beerbarrel]

I have been told that HMRC are investigating Giant now. If that's true they don't need to rely on the legislation due from April 2007 to backdate tax demands.

[Donkey]

For what its worth my agency have taken Giant off their PSL

[Ardesco]

They passed something in 2004 that said that any changes in tax law could be retroactivly backdated to 2004.


If El Gordo decides he is short of a few bob (I wonder what the chances of that are.....) he can go after everybody who was on one of these schemes if he wants to....

[Ivor1]

I have been told that HMRC are investigating Giant now. If that's true they don't need to rely on the legislation due from April 2007 to backdate tax demands.

For what ?

[beerbarrel]

HMRC didn't tell me, they just indicated that giant powerhouse was currently under investigation