Her Majesty’s Revenue & Customs’ (HMRC) long awaited audit standard, which recruitment agencies hoped would put an end to concerns about debt transfer, may not happen at all.

In a statement on its website, HMRC said: “In developing a Managed Service Company Audit Standard, issues have arisen regarding the precise extent to which HMRC's legal powers permit such an Audit Standard.

“HMRC will now consult external stakeholders to seek their views on the consequences of delaying, or not publishing at all, before deciding how best to proceed.

“It is appreciated that this will be disappointing news for many who saw the MSC Audit Standard as providing a level of assurance. HMRC will continue to update guidance to provide as much clarity as possible regarding the MSC legislation and particularly the transfer of debt provisions.”

However, John Chaplin, director KPMG people services practice, told Recruiter that he hadn’t given up all hope of an HMRC audit standard at some stage. However, he said: “The chances of a audit standard before January 6 [when the debt transfer provisions kick-in] are virtually zero.”