Will the fact that many of the Service Providers are overseas increase the risk that HMRC will look to employment businesses, as the parties with greater assets, to transfer debts?
No. Employment businesses should bear in mind that HMRC will only consider transferring debts to an employment business both if debts are irrecoverable from Service Provider or workers, and there is evidence that the employment business was actively involved in the provision of the workers’ services through an MSC.
