688AManaged service companies: recovery from other persons

1

PAYE regulations may make provision authorising the recovery from a person within subsection (2) of any amount that an officer of Revenue and Customs considers should have been deducted by a managed service company (“the MSC”) from a payment of, or on account of, PAYE income of an individual.

2

The persons are—

a

a director or other office-holder, or an associate, of the MSC,

b

an MSC provider,

c

a person who (directly or indirectly) has encouraged or been actively involved in the provision by the MSC of the services of the individual, and

d

a director or other office-holder, or an associate, of a person (other than an individual) who is within paragraph (b) or (c).

3

A person does not fall within subsection (2)(c) merely by virtue of—

a

providing legal or accountancy advice in a professional capacity, or

b

placing the individual with persons who wish to obtain the services of the individual (including by contracting with the MSC for the provision of those services).

4

The supplementary provision that may be made by the regulations includes provision as to the liability of one person within subsection (2) to another such person.

5

In this section—

• “associate” has the meaning given by section 61I,

• “director” has the meaning given by section 67,

• “managed service company” has the meaning given by section 61B, and

• “MSC provider” means an MSC provider who is involved with the MSC (within the meaning of section 61B).

6

Section 61C(4) (extended meaning of “associate”) applies for the purposes of subsection (2)(d).

7

The Treasury may by order amend this section (but not this subsection or subsection (8)).

8

The Treasury must not make an order under subsection (7) unless a draft of it has been laid before and approved by a resolution of the House of Commons.