Is MSC legislation causing accountants concern?

Accountants are excluded from MSC legislation but is there a fine line between an ASP and a MSCP?

Didn't find your answer?

A set of conditions identifies a Managed Service Company provider and a set of activities allows HMRC to apply Managed Service Company legislation. These services and activities exclude genuine accountants from the legislation, meaning their clients can not be caught by MSC legislation.  

However, I have found that many accountants are still wary, fearful even. 

I helped HMRC when MSC legislation was being enforced back in 2007, and I am again in contact with HMRC about a couple of current investigations into contractor limited companies or PSCs and the 'accountancy firm' they used in 2017/18; I am raising a specific issue concerning PSCs that were not caught by agency/IR35 legislation, before  the MSC legislation applied.

Does anyone have any comments or concerns about MSC legislation from an accountant's point of view?

I belong to a network of accountants and tax professionals, and I have gained two impressions recently, one is that MSC legislation is not fully understood by either accountants or their clients, and two, that some accountants would rather steer clear of assisting taxpayers with an ongoing tax-avoidance issue, just when anyone with this particular issue specifically needs a genuine accountant.

I want to mention my impressions and any other issues I haven't thought about in my next approach to HMRC, and so I would be grateful to hear any comments, complaints to put to HMRC, anecdotes or alternatively, whether my impressions are unfounded.     

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.