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Definition

The content of the legislative definition of an MSC provider is brief. The provider is 'a person who carries on a business of promoting or facilitating the use of companies to provide the services of individuals'¹. To examine this definition in more detail, support can be gained from HMRC guidance². There are exclusions from the definition of MSC provider which are the potential MSC provider:

1. Ìý

   •ÌýÌýÌýÌý merely providing legal or accountancy services in a professional capacity or³

2. Ìý

   •ÌýÌýÌýÌý merely carrying on a business consisting only of placing individuals with persons who with to obtain their services⁴. However, this exclusion does not apply if the potential MSC provider or their associate⁵:

3. 1. Ìý

      –ÌýÌýÌýÌý influences or controls the way in which payments to the individual worker/service provider (or associates of that individual) are made; or

   2. Ìý

      –ÌýÌýÌýÌý gives or promotes an undertaking to make good any tax loss

   3. Ìý

      –ÌýÌýÌýÌý influences or controls the MSC's finances or activities (by means other than influencing or controlling