Managed service company (MSC)

A body corporate or partnership which satisfies all the following conditions:

• Its business consists wholly or mainly of providing (directly or indirectly) the services of individuals to other persons.
• Payments equal to all or the greater part of the consideration for the provision of the services are made (directly or indirectly) to the individual (or their associate).
• The way in which the payments are made would (if not for the MSC legislation) result in the individual receiving a higher amount than if the payments were taxed as employment income of the individual.

A person who carries on a business of promoting or facilitating the use of companies to provide the services of individuals (an MSC provider) is involved with the company. This definition is contained in Chapter 9 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003.

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