Further MSC legislation Update

Our legal representatives on the proposed MSC legislation, Lawspeed* have today been provided with a copy of the Government's first draft of the threatened third party liability provisions, making third parties liable for the tax debts of an MSC.

Their first review of the rules suggest that liability is in the following order:

1. First the MSC and its scheme provider;

2. Then any agency or end user, or any person who directly or indirectly has encouraged, facilitated or otherwise been involved in the provision by the MSC of the services of the Individual

Consultation with government is open until 30th April. It is however the stated intention that the new laws in final form will apply to any tax debt incurred from 6th April 2007. Accordingly whilst some may be tempted to consider that there is time after 6th April 2007 to change their arrangements, there is in fact no time if potential tax liability is to be avoided.

Atlantic Umbrella as an compliant Employment Management Company does not fall within the definition of an MSC. This means that end users and agencies that work with us do not need worry about any of the above.