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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.9 Managed service companies /Scope of the MSC legislation—introduction / E4.908A Managed Service Company (MSC)
Commentary

E4.908A Managed Service Company (MSC)

Personal and employment tax

The definition of a managed service company is set out in ITEPA 2003, s 61B. However, there is a slightly modified definition for the purposes of the employment intermediaries travel rules (see E4.718).

Under the legislation, a company is a managed service company if1:

  1. Ìý

    •ÌýÌýÌýÌý its business consists wholly or mainly of providing (directly or indirectly) the services of an individual to other persons. The term 'an individual' here includes the provision of the services of more than one individual, and thus the legislation potentially applies to both single-worker companies and composite and umbrella companies)

  2. Ìý

    •ÌýÌýÌýÌý payments are made (directly or indirectly) to the individual (or associates of the individual) of an amount equal to the greater part or all of the consideration for the provision

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