MSC Legislation
Limited company contractors can be caught by MSC legislation if HMRC has determined that the accountancy firm used by the business, was mainly promoting and facilitating the use of personal service companies as a means of avoiding agency and IR35 legislation.
If proven, this can result in the company director paying a substantial amount of back tax and NI contributions, because the relevant company income becomes chargeable under PAYE, if the contractor has not been allowed to exert full control over his/her company financial decisions.
Carolyn Walsh
I have been an active participant in all tax matters relating to work and employment status, from starting my career with HM Revenue & Customs, to working at director level for over 20 years in the temporary and freelance labour sector.
My core passion is helping freelancers, workers and contractors who have been caught by tax legislation which leads to a tax and NIC debt, usually because any income generated should have been treated under PAYE in specific tax years, in the opinion of HMRC. This would be due to a payroll or other scheme used, having been deemed by HMRC to be 'defeated', or the accountancy firm used, later being deemed to be a Managed Service Company provider.
Another interest is helping small business owners to improve their administrative and accounting functions, by leveraging the business technologies that are available to them. Making Tax Digital will make using accounting software obligatory for all but the smallest businesses, but I believe this will be a catalyst for better business processes, enabling growth and cost savings.
