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HMRC are 'exploring the possibility of publishing an audit standard whereby certain external bodies... would be able to determine whether a scheme provider's business model would result in clients being managed service companies'.
HMRC say they will 'publish further information once a final decision has been made about an audit standard'.
Rumours that HMRC were considering an accreditation scheme for managed service company providers appear to be unfounded. Lawspeed, a legal consultancy which specialises in contractor affairs, says that such a scheme has been 'considered and wholly rejected by HMRC'.
As David Smith of Accountax says 'this is new untested legislation that needs to be interpreted and settle down before anything happens.
Ultimately, HMRC will pursue those who appear to be caught and the pursued will have a right of appeal. If HMRC investigate and then give a clean bill of health, then so be it, but that is no different from a PAYE compliance audit'.
