Personal Service Companies and IR35
The changes to dividends in the 1998 Finance Act together with the much hyped "millennium bug" resulted in the formation of ten's of thousands of PSC's. Significant tax savings for the taxpayer are significant tax losses for the Chancellor, and the Finance Act of 1998 was shortly followed by the infamous IR35 legislation.
This legislation seeks to expose what the Inland Revenue describe as "disguised employment". The use of a small limited company, with only one director and shareholder, contracting to principally one "employer". We can guide you through the implications of IR35, and assist you in the formation of a contract and working arrangements that comply with IR35 and protect the tax savings available to personal service companies.