6U.K.After section 688 insert—
(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.”