The legislation provides three steps for calculating the deemed employment payment under the managed service company (MSC) rules (ITEPA 2003, s. 61E). Where payments or benefits are related partly to the provision of relevant services and partly to other matters, then an apportionment is to be made on a just and reasonable basis.

Step 1: amount of benefit

The first step for the MSC is to take the amount of the payment received by the worker (whether or not it was paid by the managed service company). The calculation of this amount is explained at ¶408-650.

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