DANSP25800 - Decision types: Transfer of debts of managed service companies

{#IDAA1PWC}Paragraph 29C of Schedule 4 to the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)

Where the PAYE and National Insurance contributions debts of a Managed Service Company (MSC) cannot be recovered from the company, Section 688A(2), Part 11, ITEPA sets out to whom a debt can be transferred.

The categories are:

  1. The director, or other office holder or associate of the MSC
  2. The MSC Provider or the director, or office holder or associate of the MSC Provider
  3. Any other person who directly or indirectly has encouraged or been actively involved in the provision by the MSC of the services of the individual, or a director, or other office holder or associate of such a person.

The Debt Transfer Team, within the Employment Status & Intermediaries Team (ES&I) hold responsibility for the issue of transfer notices as well as the receipt of any appeal against these. ESM3630 provides further information on roles and responsibilities where an MSC debt is identified.

For further guidance about transfer notices refer to ESM3625