Rceruitment Agency hit by MSC transfer of debt by HMRC

[LisaContractorUmbrella]

Has anyone seen anything more published about this?? I can't see that the article was picked up by anyone other than Recruiter

[PSK]

I posted the following in reply to a different thread. It's from an article in recruiter.co.uk but doesn't give much more information than you already appear to have heard -

Recruiters urged to review contractor compliance procedures
Wed, 13 Apr 2011


Recruiters need to review their compliance practices after reports that a recruitment agency and its director are facing a £10m Transfer of Debt notice from HMRC under Managed Service Company legislation, according to The Freelancer and Contractor Services Association (FCSA).
Under the legislation, third parties including recruiters or their individual officers and directors can have unpaid tax debts from individual contractor limited companies transferred to them where they have encouraged or been actively ‘involved’ in services to those companies which are caught by the MSC rules.
FCSA says the case highlights the very real danger of ignoring compliance in this area. “Since its creation, FCSA has advised of the need to take this issue seriously and ensure appropriate due diligence is in place to manage this risk.
“In simple terms, there are two different ways of doing this correctly. One is to leave contractors and freelancers alone to gather their own information on the different ways of working available to them and allow them to choose an appropriate service provider without help.
“The other is for recruitment agencies to add value for their contractors by providing a preferred supplier list (PSL) of organisations which are providing their services in a fully compliant way.
“There are benefits and disadvantages to both approaches but either approach, if implemented thoroughly, can minimize risk.”
Stuart Davis, chair of FCSA, adds: “This need for appropriate due diligence is the basis of the FCSA Code of Conduct. We would advise all recruitment agencies to apply this Code or simply use FCSA member businesses if it wants to put a PSL in place.
“The Code demonstrates that FCSA member businesses are operating compliantly with all relevant legislation, including MSC legislation, and therefore deals with the Transfer of Debt risk directly. Such an approach enables recruitment agencies to establish robust PSLs, which deliver benefits both to their contractors and their own businesses, without exposing themselves to the significant risks in this area.”

[Alpidwell]

10m-debt-transfer-case

Its all very quiet to be honest, all I can find online is this...

Recruitment Agency facing

Hi,

Does anyone know or has heard of the agency who have been hit with a £10 million MSC transfer of debt bill by the HMRC. Have also heard that an Umbrella Company has gone bust. Any news would be greatly appreciated.

[Mikey3001]

Hi,

Does anyone know or has heard of the agency who have been hit with a £10 million MSC transfer of debt bill by the HMRC. Have also heard that an Umbrella Company has gone bust. Any news would be greatly appreciated.