1007-675 Summary of the NIC rules for managed service companies
Contractors who work through managed service businesses, known as ‘managed service companies’ even though the term explicitly includes partnerships, may still have to pay Class 1 NICs even if they draw all their money by way of dividend or partnership profit-share because the sums are deemed to be earnings. The NIC rules are based largely on the equivalent tax rules now in ITEPA 2003, Pt. 2, Ch. 9.