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Provider involvement
Overview

Assessing your potential risks in relation to the MSC legislation is a complex and difficult issue.

Firstly you have to identify if your provider would be classed as a managed service company provider [MSCP].  An accountancy service provider that is a MSCP, and in our view the vast majority would be classed as MSCP's by HMRC, does not in itself present an issue.

The term MSCP is purely an indicator that the provider of the services is a specialist in this area. This can be a benefit as they are likely to be aware of the many legislative issues that can affect you.

The second assessment you will need to make is whether the provider would be classed as involved under the terms of the MSC legislation.

In the simplest of terms, where you feel you are offered an off the shelf solution that takes little account of your personal situation and offers limited flexibility on how you can structure your affairs this is likely to be considered as a MSC by HMRC.

We always suggest using our approved providers who have been fully assessed against the MSC legislation and, in our opinion, operate compliantly.

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