If you provide your services to end clients through an intermediary company, which is controlled and run by a third party service provider, then Managed Service Company legislation may apply. If it does, you must comply with this legislation rather than IR35. In order for a company to be considered as a Managed Service Company (MSC), the following requirements must be met:


The company’s business must consist wholly or mainly of providing direct or indirect services of an individual to third party clients.


The individual supplying their services to the third party client receives payments from the service company equal to the greater part of the sums received by the service company from the client for the services provided by the worker.


The payments received by the worker are greater than what they would have received if all of the payments were treated as employment income of the worker relating to an employment with the service company.


For this condition to be met there must be a person termed as an “MSC provider”, and that person must be involved with the company. To be an MSC provider, a person must be promoting or facilitating the use of companies to provide the services of individuals.