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Alternative to Managed Service Companies

Has anyone found an alternative to Managed Service Companies that still keeps the income outside IR35 ?
John Robert Atkin


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By Anonymous
27th Mar 2007 21:25

We have access to a solution for higher earning contractors - over £50k per annum. If you want to put up contact details, I'll get in touch. You can delete them later.

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By Anonymous
28th Mar 2007 14:04

Income or contract
Personal Service Companies that are owned and operated by the contractor (who can engage who he wants to provide accountancy services but would be well-advised to avoid an outfit that was previously known as an MSC provider imo) are outside the scope of the new MSC legislation.

However, the IR35 (intermediaries) legislation still applies and being inside it or out will depend solely on the contract terms and working practices for each individual contract. There isn't really a way to keep the income outside except to choose a contract that meets the criteria.

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By Anonymous
28th Mar 2007 14:37

There are several solutios being marketed. One of them is to create a partnership which has generous dispensation and allowances etc.

IR35 actually hits a particular contract rather than a service company. A company can have 1 contract falling under IR35 but another 2 that does not etc.

As long as the terms of the contract is drafted carefully (assuming that the client is flexible), IR35 does not apply (e.g. things like using your own home office, laptop, resonable amout of discreation etc).

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By Anonymous
05th Apr 2007 17:33

Red queen strikes again
Buried awy in the Finance Bill provisons in relation to MSC's is the following gem:-
Sch 3 introduces a new section to ITEPA

The new section 61C(3)provides that

",....company means a body corporate or partnership"

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