Managed Service Companies (MSCs)
Managed Service Companies essentially take over the running of a contractor's limited company. Such
MSC providers / 'composite companies', particularly in the past, would group such companies together into 'schemes' in order to minimise tax and NI liabilities. Understandably, HMRC cracked down hard on MSC's from April 2007. As a result, IT contractors are now advised to work via their own
limited companies, or
umbrella companies.
A new survey suggests that less than a quarter of contractors polled felt confident that they were operating within the Managed Service Company rules.
(Nov 11, 2008 in
MSC Legislation
)
One of the UK's leading contractor accountancy firms says it has become the first to be confirmed by KPMG as not being caught by the controversial Managed Service Company legislation.
(Jan 10, 2008 in
MSC Legislation
)
The REC has warned recruiters and other third parties (such as the end-users of contractors) to get their house in order if they want to avoid unwanted tax bills.
(Jan 8, 2008 in
MSC Legislation
)
A legal view on recent speculation that a managed service company accreditation scheme is under consideration by HMRC.
(Sep 25, 2007 in
MSC Legislation
)
HMRC is considering implementing an 'audit scheme' for managed service company providers. News of the proposed scheme has received a mixed response from within the contracting industry.
(Sep 21, 2007 in
MSC Legislation
)
HMRC have released a guidance document on the managed service company legislation. Includes indicators of whether a service provider may be an MSC provider.
(Jul 12, 2007 in
MSC Legislation
)
Most contractors think that the impending legislation to effectively outlaw Managed Service Companies is unjustified and that it reflects an overall distrust of the self-employed by the British Government
(Jun 11, 2007 in
MSC Legislation
)
Opposition MPs voiced their criticisms of the new tax rules for Managed Service Companies (MSCs) during a Commons debate on the Finance Bill this week.
(May 2, 2007 in
MSC Legislation
)
The PCG has assured the IT contractor marketplace that ordinary limited companies are unaffected by the new tax rules on Managed Service Companies
(Apr 9, 2007 in
MSC Legislation
)
An overview of the Managed Service Company legislation and how it applies to contractors. How to recognise an MSC provider.
(Mar 30, 2007 in
MSC Legislation
)
Details of the law that defines Managed Service Companies (MSCs) and explains how they will be penalised under the new tax legislation, have finally been obtained.
(Mar 22, 2007 in
MSC Legislation
)
A Managed Service Company Legislation Calculator has been launched to help UK contractors work out whether they will be affected by forthcoming changes to tax legislation due to be announced in the Budget today.
(Mar 21, 2007 in
MSC Legislation
)
The Times reports that The Treasury may compromise on the date the "third party rule" element of the MSC legislation will take effect.
(Mar 12, 2007 in
MSC Legislation
)
As the Managed Service Company legislation looms, the FT reports that company registrations have doubled as contractors aim to escape the Government's latest tax rules.
(Mar 6, 2007 in
MSC Legislation
)
ICAS has called on HM Treasury to ensure that the proposed new legislation to combat tax avoidance by 'managed service companies' should be narrowly focused on those guilty of abuse.
(Mar 5, 2007 in
MSC Legislation
)
The PCG has submitted its formal response to the Governments Managed Service Company (MSC) proposals.
(Feb 28, 2007 in
MSC Legislation
)
There appears to be some confusion within the freelance industry with regard to the proposed MSC Regulations and if they apply to Umbrella Companies who have an HMRC Dispensation to pay expenses.
(Feb 13, 2007 in
MSC Legislation
)
Gordon Brown's intention to crack down on Managed and Composite Service companies has been well reported within the contracting market, but if you are working through a company which falls under this definition do you really know what to do?
(Feb 7, 2007 in
MSC Legislation
)
The Recruitment and Employment Confederation is concerned that proposals to change the way a quarter of all contractors are taxed have not been thought through by the Treasury.
(Jan 19, 2007 in
MSC Legislation
)
The Treasury's plan to introduce legislation in April, which will effectively close down Managed Service Companies (MSC's), is likely to drive the non-compliance problem underground, according to a leading IT contractor accountant.
(Jan 12, 2007 in
MSC Legislation
)
A comment on the managed service company changes included in the Pre-Budget Report, by a leading IT contractor accountant. What should contractors do next?
(Dec 22, 2006 in
MSC Legislation
)
In light of the Chancellor's Pre-Budget Announcement on Managed Service Companies (MSC's), what now for IT Contractors?
(Dec 13, 2006 in
MSC Legislation
)
Pre budget report 6 December 2006: New managed service company legislation proposed - legal analysis of the new proposals, what might this mean for contractors?
(Dec 11, 2006 in
MSC Legislation
)
The recent pre-budget report by the Chancellor of the Exchequer, Gordon Brown, has sounded the death knell for Composite or Managed Service Companies - an opinion piece written by Simon Dolan.
(Dec 7, 2006 in
MSC Legislation
)
In delivering this year's Pre-Budget Report, the Chancellor made it clear that he intends to come down hard on schemes designed to avoid paying income tax and National Insurance. Top of the list are "Managed Service Companies".
(Dec 7, 2006 in
MSC Legislation
)
The Chancellor's proposals to remove the tax advantage offered by composite and managed service companies is the big story for freelancers and contractors in today's Pre-Budget Report.
(Dec 6, 2006 in
MSC Legislation
)
The Government has announced a consultation on the employment status of contractors in the Budget, suggesting that some companies that operate a 'managed service' are clearly not complying with IR35
(Mar 28, 2006 in
MSC Legislation
)
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