A Managed Service Company (MSC) is a personal service company which uses a third-party provider (MSC Provider) to limit the responsibility of running the company, whilst still benefiting from the tax efficiencies of a limited company structure.
A personal service company (PSC) is a limited company where the main shareholder is also the primary fee-earner. In most cases, they are the director and only employee of the company.
The MSC legislation will apply if the following criteria are applicable to your circumstances:
You mainly provide the services of an individual (via a personal service company) to other people/businesses
You receive, as the owner of your PSC, payment for your services which is either the full amount received by the PSC, or close enough to the full amount
The amounts received are greater than would have been received if the payments had been subject to PAYE
A person who carries on a business of promoting or facilitating the use of companies to provide the services of individuals (“an MSC provider”) is involved with the PSC