MSC Legislation – Further Guidance

HMRC issues further guidance in relation to the MSC legislation As part of its ongoing monitoring of events related to the MSC legislation HMRC has identified areas where it feels additional clarification would be required, in particular to address certain misleading information. This further guidance can be found at http://www.hmrc.gov.uk/employment-status/monitoring-legislation.htm. It is important to note that HMRC emphasises that contractors genuinely in business on their own account are not intended to be subject to the MSC legislation, and therefore pose no risk to an employment business. However it is not clear what HMRC means by the words ” in business on their own account” since there are no established tests to determine this, and the use of these words is a departure from the usual test that is applied which is based upon deemed employment status within an assignment. Could this statement be creating more questions than answers? HMRC has…