HM Revenue & Customs has won a long-running legal case against a group of five healthcare workers who avoided income tax and national insurance through their use of managed service companies (MSCs), reports the Business Telegraph. The HMRC successfully argued that the healthcare companies’ arrangements fell afoul of the managed service companies law, legislation that has been in place since 2007. The group of five health and social care professionals used MSCs developed and run by a company called Costelloe Business Services at various points since 2007. Costelloe was dissolved in 2016. The Upper Tribunal agreed with the original First Tier Tribunal decision that the appellant’s companies were operating as MSCs. The group of five health and social care professionals now collectively face a tax and national insurance bill of approximately £160,000. Seb Maley, CEO at Qdos, a provider of services to contractors, said the case could have implications for MSCs, adding that the victory did not fully unpick which accountancy practices could be considered within MSC legislation.