Part 11

Pay As You Earn
Chapter 3

PAYE: special types of payer or payee

Managed service companies: recovery from other persons
688A
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
but for the purposes of section 339A has the meaning given by subsection (11) of that section
, 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.
S. 688A inserted (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), s. 25(2), Sch. 3 para. 6
Words in s. 688A(5) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 14(2)
Pt. 11 power to amend or repeal conferred (21.7.2009) by Finance Act 2009 (c. 10), Sch. 58 para. 10