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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.9 Managed service companies /History and introduction of the MSC legislation / E4.924 Background to the introduction of the MSC legislation
Commentary

E4.924 Background to the introduction of the MSC legislation

Personal and employment tax

E4.924 Background to the introduction of the MSC legislation

MSC providers appeared in the marketplace marketing their services to a variety of potentially interested parties, including1:

  1. Ìý

    •ÌýÌýÌýÌý business connections with agencies from where workers are referred

  2. Ìý

    •ÌýÌýÌýÌý approaching end-user clients to provide MSC schemes for them

  3. Ìý

    •ÌýÌýÌýÌý reported instances where employers 'unloaded' their staff wholesale into an MSC arrangement, known as a 'bolt-on' MSC scheme, in such a way that, largely, the staff remained unaware of exactly what had happened

The government first signalled concerns

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