Managed Service Companies (MSC)

On 6 April 2007 Chapter 9 ITEPA 2003, more commonly known as the Managed Service Company ('MSC') legislation, was introduced.

The MSC legislation applies to individuals providing their services through intermediaries which meet the definition of a MSC.

All payments received by individuals providing their services through MSCs are subject to PAYE and National Insurance contributions.

The MSC legislation applies equally whether an MSC is based within the United Kingdom or outside the United Kingdom.

Where the PAYE and NICs debts of an MSC cannot be recovered from the company, HMRC may transfer the debt personally to one of the following:

• the company's director
• the MSC Provider
• other third parties

Please use the links aside for detailed guidance and more information.