HMRC’s intention was to tackle tax and National Insurance (NIC) avoidance schemes through the use of intermediaries, such as Partnerships or Personal Services Companies (PSC). Contractors often use the as a PSC to obtain work either direct from an end client or via an agency. HMRCs’s view was that a large number of IT Consultants, Engineers, non-executive directors and “one man band companies” were often treated as self-employed when in fact they should have been treated as employees of the end Client. This was based on the terms and conditions that the Contractors worked under., The legislation was very effective and thousands of contractors and their service providers were affected by the legislation, effectively ruling out managed service companies for contractors, and increasing the population of contractors using umbrella company solutions., End clients won't pay managed service companies' tax debts if they receive services of a worker if those services are provided via a company which existed before they approached the client. But should the client give advice to the worker that operating through a company could be beneficial, this .