As a result of the 2007 Budget, HMRC significantly changed the definition of a Managed Service Company. Essentially this applies to all contractors working via their own limited companies, who receive income subject to less tax than if they were employed and who use a “MSC provider”., A managed services contract is a legal agreement between a service provider and a client outlining the provisions for business process delivery and management. The contract specifies both parties' functions, responsibilities, and expectations, ensuring clarity and a mutually fruitful working association. This blog post will discuss writing a managed services contract, key considerations, and more., Typically ten to twenty contractor shareholders would work via a single company, operated by a scheme provider, which would take care of all invoicing and accounting tasks., , , .