MSC Audit Standard

There are no plans for HMRC to provide an accreditation scheme for Service Providers. However, HMRC is actively considering the development of an Audit Standard. Such a Standard would be published on HMRC’s internet and would enable a suitably qualified person, not associated with the Service Provider, to review a Service Provider’s business model using the Audit Standard. This would determine whether the Service Provider’s client companies were MSCs or not. If such a review concluded that the companies were not MSCs, the Service Provider would be able to state that publicly.

The intention is that such an Audit Standard would provide legal certainty for Employment Businesses.

Officials emphasised that development proposals are at an early stage and there are a number of issues to resolve before a final decision is made.