MSC legislation

 Managed Service Company (MSC) 

MSC, a type of intermediary company that enables a contractor provides services to end clients and most importantly these services are managed by an MSC scheme provider that provides the required structure to the contractor who does not have control over the company. In other words, Managed Service Company is a form of corporate structure that treats an owner or director of the company as an employee who is subjected to PAYE taxes and social security. A company is a Managed Service Company if it provides the service of an individual to other persons, or makes payments directly or indirectly to the individual etc.

Understanding MSC Legislation with Conto direct 

MSC Legislation is a newly introduced legislation in Finance Bill 2007, which enforces all Managed Service Companies to pay their staff through salary and ensures that all workers are subjected to full PAYE and NI taxation. MSC Legislation was made effective in March 2007 that made MSC providers illegal until MSC companies and client contractors paid complete tax and national insurance on their earnings. This has brought an end to Managed Service Company and the composite company as there is not any financial advantage for them to use as a vehicle to contract through. Understanding this legislation is sometimes very confusing for many companies, hence these companies take expert advice from professionals like Conto Direct to understand this legislation in a very detailed manner.

Who is not affected by the MSC Legislation?

Each and every company is not affected by the MSC Legislation and especially companies working through Personal Service Companies do not come within MSC. These Umbrella Companies under legal contract not only employ contractors to deduct the correct PAYE and NI but also help companies outside the MSC legislation. Here comes the important role of Conto Direct, which provides commendable umbrella service completely according to the new MSC Legislation.    

Conto Direct Umbrella Service in Accordance with new MSC Legislation

At Conto Direct we offer a completely compliant umbrella service according to the new MSC legislation. Conto Direct ensures that all companies under MSC conform to UK company law and must have qualified accountants, who can ensure that companies’ accounts are managed correctly.  In order to operate in accordance with MSC legislation, companies take advice and assistance from expert like Conto Direct so that they remain outside the law of the new MSC legislation. Conto Direct does not act as MSC scheme provider and is not involved in business for promoting or facilitating the services, instead we help companies to employ best platform for maintaining their records, business processes and accounts.