Personal service companies

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Advice on personal service companies and IR35

There is no clear definition to what constitutes a personal service company (PSC) and it makes life difficult for people who prefer to work as a contractor, either through a limited company or as an individual.

HM Revenue and Customs (HMRC) stepped in with a new tax formula to stop a small minority who claimed payment through a limited company and paid themselves in dividends rather than salary, thereby escaping some tax and national insurance elements. However, contractors often claim that the taxman is using the new regulations to their advantage when investigating their tax affairs.

Often the cases come down to establishing the dividing line between employment and self-employment, but the regulations are complicated and we recommend any sole trader who works as an individual or through a limited company to get advice from our team of experts.

Speak to a personal service company accounting expert

Jonathan Walton

Director

High Wycombe

Laura Adkins

Laura Adkins

Director

Witney

Laura Herbert

Laura Herbert

Director

Bicester

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Partners in your progress

Get in touch to talk to a knowledgeable personal service company accountant or for help with IR35.