Personal Service Company Guide

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If you use a specialised firm the fees can be very cost-effective and significantly lower than using a high street accountant who would charge you on a hourly basis – don’t bother. Your chosen accountant will be able to guide you through our 10 easy steps to setting up your company and getting started. One of these steps will be to set up your accounts online using one of the popular cloud based systems like FreeAgent or Xero. Despite the best efforts of HMRC and the Treasury, contractors and the trade bodies that represent them – such as IPSE – stubbornly refuse to be cowed by the succession of tax laws that have followed the introduction of IR35. Due to poor planning and ineffective consultation, when the IR35 legislation was introduced it was discovered that a huge number of small and micro businesses would be also be affected, including many that had been trading for decades. We have a powerful online system and fully-trained accountants to relieve you of stressing about those numbers.

Advantages of being a director or shareholder of a PSC

Business can be a risky and competitive industry, but having considered my most desired skills and interests, I know that I am ready to step into the world of business… I want to study finance because it is a fascinating discipline dealing with money, markets and valuation that is relevant to all aspects of business. The financial system is there to make sure that those with good ideas get the money necessary to implement the ideas but finance is also concerned with the relationship between investor expectations about the future and current market values…

  • We’ll provide reliable referrals for qualified accountants in your area, based on longstanding professional relationships and extensive knowledge of their specialisms and working practices.
  • Some owners may be looking to invest the company’s retained funds in buying a property or other form of investment.
  • Explore why Cryptocurrency in the UK is taxed subject to income tax or capital gains tax, and in some instances both.
  • To this end, HMRC wants to see that contractors are ‘genuinely’ self-employed – for example, they’re taking on all the risks of running a business, and are providing services on a project-by-project basis .

These transparent calls to action give users an opportunity to access the content most relevant to their needs. When a selection is made, the background video changes to show imagery relevant to personal or business services alongside navigation options which funnel visitors through to practice areas content. Browne Jacobson also use a search panel to direct traffic through to each of the sectors and services pages. This drop down increases the usability of the website by making the content easily accessible to all clients. Many businesses also hire contractors through an agency to delegate tasks such as vetting candidates and checking their credentials. As a founding member of the Freelancer and Contractor Services Association , compliance matters with everything we do.


This means that setting up a personal service company is the only choice for many contractors. PSCs undoubtedly serve a valuable purpose for those who wish to offer their services with the benefit of limited liability. Other options such as Limited Liability Partnerships could be considered, but for simplicity PSCs have many advantages. They are inexpensive to set up and annual costs for accounting, HMRC and Companies House requirements should be modest. Small companies are exempt from complex reporting requirements so the administrative burden should be relatively light.

PSC contractors, as they’re often referred to, are impacted by the IR35 legislation, which was rolled out to prevent ‘disguised employees’ from trading through these companies as a mechanism for avoiding tax. Take a look at our IR35 Advice Centre to find out more about our IR35 insurance trusted by over 25,000 contractors. We also do a range of IR35 contract reviews provided by our expert team of IR35 assessors. Here at Qdos Contractor we have handled well over 1,600 IR35 enquiries on behalf of UK contractors, saving them over £35m in tax. When opening a PSC, you should also consider the impact this could have on the amount of tax you pay. This is due to the fact that by working through a PSC you have the ability to receive money from your company as a mix of salary and dividends.

As I trekked for 2 days and stayed with a Thai village tribe feeding elephants and helping local families I thought and smiled ‘ Dreams really can be achievable’… Pursuing a masters degree is a responsibility I owe to myself as well as a commitment I have to others. I refer to it as a responsibility because I have a proactive outlook on life, which makes me actively seek and go after the things that I want to accomplish in life…

Hiring an individual for a one-off project is simpler, and there is a mitigated risk if something doesn’t go to plan. The term PSC was originally used by HMRC in relation to the introduction of the IR35 legislation back in 2000. Pay tax and National Insurance Contributions under PAYE and have little scope to claim expenses. Think about how any work experience has helpd you, what you have learned from it, and how it might be useful in your degree. It should also convey your passion for the subject, as well as why you want to pursue a degree in this particular subject. Over the past 2 years, I have discovered a passion and interest for business matters stemming predominantly from the IB economics course and understanding how the theory plays out in the real world.

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