Managed service company

Worker, Intermediary, Client, Composite Company, Agency & Scheme Promoter

Worker(s)

you are the director and owner of a Personal Service Company
you decide if your contract is within the scope of IR35 or not
you are the person providing the services
you are responsible for the terms you have agreed to

Intermediary that is not a Managed Service Company

if a contract is within the scope of IR35
the intermediary is responsible
an IR35 deemed payment must be calculated
the intermediary must operate PAYE and pay Class 1 NIC on all earnings
this applies to all relevant contracts i.e. within the scope of IR35
contracts outside the scope of IR35 can be excluded

Client

for contracts within the scope of IR35
no obligation on Client to account for Workers tax or NI contributions

Composite Companies

workers are also non director shareholders
required to operate PAYE if salaries are paid
if salaries are not paid therefore no PAYE
composite company must consider definition of Managed Service Company
if applicable, an MSC deemed payment must be calculated
if not applicable, consider contract's scope under IR35
if applicable, an IR35 deemed payment must be calculated

Agencies

recruitment agency in the chain between Worker and Client
Worker may have Personal Service Company
IR35 puts the responsibility for tax & NI on Intermediary
unlikely Agency meets conditions relating to an intermediary

Scheme promoters

consider if they are an MSC
if applicable, calculate MSC deemed payment
if not applicable, advise relevant Workers of IR35 liability