Chancellor to postpone MSC laws

[kirk]

The Treasury is believed to be considering postponing the introduction of legislation which would render agencies and end-point employers liable for some contractors' tax debts.

Draft legislation designed to crack down on contractors who reduce their tax commitments through the use of managed service companies (MSCs) was unveiled last month, entitling HM Revenue & Customs (HMRC) to claim unpaid taxes from so-called 'third parties'. However, the Times has learnt that Chancellor Gordon Brown has taken note of submissions from employers and agencies which claimed that the rules, and in particular the timeframe, would place companies in a difficult position.

Although he is not expected to change his mind over the legislation itself, he is thought to have agreed to postpone its original April 6th introduction for six months.

http://www.pcg.org.uk/cms/index.php?...235&Itemid=565

Hmmm.......

[Bluebird]

If you read the full stort and quotes, the bit which may be delayed is the "chasing" of third parties if liability is proved and the company / directors cannot pay.

It still has the same implications for contractors having to pay full PAYE from April, the only difference is that if you go bankrupt trying to prove you are outside, HMRC can't [yet] go chasing the EB's and Clients for the debt.

[I think]

[Contractor UK]

Also covered on CUK front page

http://www.contractoruk.com/managed_...es/003145.html