This Order modifies section 4A of the Social Security Contributions and Benefits Act 1992 in consequence of the modifications made to the provisions of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”) by paragraphs 3 and 4 of Schedule 3 to the Finance Act 2007 (c. 11). Those paragraphs extend the scope of Part 2 to managed service companies. Chapter 9 of that Part contains the substantive provisions on the provision of workers’ services through managed service companies.

The effect of this Order is to secure, so far as appropriate, that workers and their earnings are treated, where their services are provided through a managed service company, as if they were employed by the managed service company.

Article 1 provides for the citation and commencement of the Order.

Article 2 effects the modifications of section 4A.

A full Regulatory Impact Assessment was published by HM Revenue and Customs and is available on their website at www.hmrc.gov.uk/ria/full-ria-man-serv-coys.pdf or from the Ministerial Correspondence Unit, HM Revenue and Customs, Yorke House, Castle Meadow, Nottingham. It is also annexed to the Explanatory Memorandum to the Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2007 (S.I. 2007/2069) which is available alongside those Regulations on the OPSI website.