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Debt transfer FAQs
We don't have a PSL, are we safe?
answer

To answer this we must first be clear on the term PSL.

We have spoken to many agencies who have insisted that they do not operate a PSL, however on closer inspection, they do suggest a list of potential providers as well as stating it is the contractors responsibility to assess providers for compliance and select one they feel appropriate. Agencies need to be clear that any form of suggestion, whether formal or informal, can leave them exposed to liabilities.

We do not believe that surrounding these recommendations with various caveats and disclaimers would successfully remove the agency from the liability or lead to a successful appeal outcome if debt transfer applied.

Furthermore many agencies have taken a stance where they have instructed their consultants not to give any advice or direction on providers.  This will only protect an agency where they can show that this policy is actively managed to ensure it is complied with.  If it emerges that an agency operating this policy has had consultants giving guidance and they are unable to demonstrate their management of the policy HMRC could use this to bring the agency in to the debt transfer rules.  In simple terms if it was seen as a systemic failing then debt transfer could apply.

 
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