Managing ok

Key points * Does the new managed service companies legislation cast its net too widely? * The aim of the new rules is to catch mass-marketed schemes. * Professional advisers should not be at risk. * Third party debt provisions have been introduced because of problems collecting PAYE from MSCs.

AFTER DISCUSSING SUCH matters as landfill tax and the aggregates levy the Public Bill Committee moved on to managed service companies (Sch 3). Firing the opening salvo Theresa Villiers said that the provisions were the successor to  IR35. Under the Schedule which inserted new s 61B into ITEPA 2003 if a company satisfied the conditions making it a managed service company it would have to account for PAYE and National Insurance on payments made in connection with services provided by workers. If it did not make those payments under new s 688A HMRC...