Archive: May 2016

HMRC wins MSC case

HMRC playing a long game

After a 9 year battle, HMRC has won the first case under the MSC (managed service company) legislation: Christianuyi Ltd & Ors vs. Revenue & Customs.

The case dates back to 2007 and relates to MSC provider Costelloe Business Services Ltd (CBS), and i4.

And more to come…

The judges making the ruling (Bannan and Woodman) underlined the importance of the case when they stated: “We understand that these are the first appeals in which the MSC legislation has been considered.” The judges also pointed out that: “there are a number of other appeals concerning this legislation which are pending before the First-tier Tribunal.”

Forest managing director, Jovan Pavlicevic commented:

This shows HMRC might move slowly but it’s crucial to make sure you’re doing things right, and that your supply chain is in order. HMRC is clawing back £160,000 from 5 healthcare workers, going back over a period of 9 years. Agencies and contractors need to be certain they’re not storing up an unquantifiable future risk. When it comes to contractor payments, you can always rely on the old adage: if it sounds too good to be true….

All this points to a need for agencies to be aware, and carefully vet all suppliers. Forest is an FCA regulated firm of financial advisers and we help agencies with compliance audits as part of a free health check service. Get in touch today to learn more.