Workseekers providing their services through companies

Provided that the Employment Business has not, since 6 April 2007, been directly or indirectly involved in the workseeker obtaining the company, then the Employment Business will not be liable for any PAYE or National Insurance debt under the transfer of debt provision should it subsequently transpire that the workseeker’s company is a Managed Service Company. In practice this situation is most likely to occur where a workseeker who already provides their services through a company approaches an Employment Business.

Where the Employment Business has, since 6 April 2007, been directly or indirectly involved in the workseeker obtaining the company, for example by virtue of referral of the workseeker to a Service Provider (a Preferred Supplier), then the Employment Business might potentially be liable for any PAYE or National Insurance debt under the transfer of debt provision.

Current guidance will be updated shortly. HMRC also proposes to publish further guidance in November to help Employment Businesses mitigate their risk where they use Preferred Supplier Lists.