Updated: Aug 5, 2022
Following on from our post regarding the Managed Service Company (MSC) legislation, HMRC is concerned that multiple contractors have breached the legislation and as a result, are issuing penalties to those who are liable.
If the contractor is unable to pay the penalty, liability will be transferred to their accountant or further up the chain, such as the recruitment agency or even the business engaging the worker.
HMRC will insist that all income generated by the MSC is subject to PAYE tax; this could, after tax, interest and possible penalties, equate up to 40% of income earned by the MSC since it was formed.
For more information about what this could mean for your business, please contact firstname.lastname@example.org where we will be happy to assist.