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History of MSC Legislation

History of MSC Legislation IR35 was introduced years back with the aim of removing the tax advantages enjoyed by workers who disguised their employment (with the end client, the recipient of their services) with incorporation (by forming their own Limited Company through which to trade), thereby enjoying the fruits of reduced PAYE and NI liabilities.
IR35, was from HMRC's perspective an almost non-starter and to date there exists industry-wide non-compliance as various schemes were devised to outsmart the Government's initial attempt at reigning the industry in. The most prolific of these are, as you guessed it the Composites and Managed Personal Service Companies schemes.
In fact, these schemes have proven so popular that over the last 5 years they have grown at exponential rates, and today are seen as a risk to the Exchequer, with losses in tax revenue for the Government estimated at around £350 million.