Personal service companies
Specialist sectors
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Subpostmasters’ compensation
There are currently three forms of compensation being awarded to subpostmasters following the Horizon scandal and each will have different tax implications.
Contractors urged to check if key legislation could now apply
Private contractors who set up limited companies to avoid being responsible for PAYE and national insurance contributions are being warned of key changes to legislation.
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
Specialist sectors
News
Subpostmasters’ compensation
There are currently three forms of compensation being awarded to subpostmasters following the Horizon scandal and each will have different tax implications.
Contractors urged to check if key legislation could now apply
Private contractors who set up limited companies to avoid being responsible for PAYE and national insurance contributions are being warned of key changes to legislation.
What should employers or contractors do if the HMRC IR35 tool delivers an undetermined outcome?
The reforms to the off payroll working regulations are set to be introduced to the private sector in April 2021, and HMRC’s online tool for determining IR35 status delivers an outcome in most cases. But what should employers or contractors do if the outcome delivered by this online tool is ‘undetermined’?
Partners in your progress
Get in touch to talk to a knowledgeable personal service company accountant or for help with IR35.
