258. Legislation extending to special cases: managed services companies.

Another set of rules supplements the IR35 regime by targeting managed services companies (MSCs)1. A company is an MSC if:

  1.  

    (1)     its business consists wholly or mainly of providing (directly or indirectly) the services of an individual to other persons;

  2.  

    (2)     payments are made (directly or indirectly) to the individual or associates of the individual of an amount equal to the greater part or all of the consideration for the provision of the services;

  3.  

    (3)     the way in which those payments are made would result in the individual or associates receiving payments of an amount exceeding that which would