managed service company (MSC)A body corporate or partnership which satisfies all of 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 (a MSC provider) is involved with the company.This definition is contained in Chapter 9 of the Income Tax (Earnings and Pensions) Act 2003, inserted by the Finance Act 2007.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.