Personal service company - Revision history

Editor at 17:06, 25 February 2021

2021-02-25T17:06:42Z

← Older revision		Revision as of 17:06, 25 February 2021
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	* Appointing consultants.		* Appointing consultants.
	* Business plan.		* Business plan.
		+	* Construction Industry Scheme or IR35?
	* Employee.		* Employee.
	* IR35.		* IR35.

Editor at 18:16, 24 February 2021

2021-02-24T18:16:56Z

← Older revision		Revision as of 18:16, 24 February 2021
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	* PAYE.		* PAYE.
	* Professional indemnity insurance.		* Professional indemnity insurance.
		+	* Status determination statement SDS.
	* TUPE Regulations.		* TUPE Regulations.
	* Umbrella company.		* Umbrella company.

Designing Buildings at 08:42, 8 November 2020

2020-11-08T08:42:31Z

← Older revision		Revision as of 08:42, 8 November 2020
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	* HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].		* HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].

−	[[Category:~~Policy~~]] [[Category:DCN_Policy]] [[Category:Taxation]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Policy]] [[Category:DCN_Regulation]] [[Category:Policy]] [[Category:Taxation]]

Editor at 14:04, 6 May 2020

2020-05-06T14:04:01Z

← Older revision		Revision as of 14:04, 6 May 2020
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	* Employee.		* Employee.
	* IR35.		* IR35.
		+	* IR35: essential steps for compliance.
	* Limited appointment.		* Limited appointment.
	* Payroll companies.		* Payroll companies.
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	* HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].		* HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].

−	[[Category:Policy]] [[Category:Taxation]]	+	[[Category:Policy]] [[Category:DCN_Policy]] [[Category:Taxation]]

Editor at 18:05, 23 July 2019

2019-07-23T18:05:48Z

← Older revision		Revision as of 18:05, 23 July 2019
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	With the trend to self-employment increasing the use of PSCs is likely to grow in the future and, with sensible planning at the outset, there is no reason why their use cannot confer advantages to those who own them.		With the trend to self-employment increasing the use of PSCs is likely to grow in the future and, with sensible planning at the outset, there is no reason why their use cannot confer advantages to those who own them.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Appointing consultants.		* Appointing consultants.
Line 53:		Line 51:
	* Employee.		* Employee.
	* IR35.		* IR35.
		+	* Limited appointment.
	* Payroll companies.		* Payroll companies.
	* PAYE.		* PAYE.
Line 59:		Line 58:
	* Umbrella company.		* Umbrella company.

−	=== External references ===	+	= External references =

	* HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].		* HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].

	[[Category:Policy]] [[Category:Taxation]]		[[Category:Policy]] [[Category:Taxation]]

Designing Buildings at 09:38, 10 October 2018

2018-10-10T09:38:33Z

← Older revision		Revision as of 09:38, 10 October 2018
Line 51:		Line 51:
	* Appointing consultants.		* Appointing consultants.
	* Business plan.		* Business plan.
		+	* Employee.
	* IR35.		* IR35.
	* Payroll companies.		* Payroll companies.
Line 56:		Line 57:
	* Professional indemnity insurance.		* Professional indemnity insurance.
	* TUPE Regulations.		* TUPE Regulations.
		+	* Umbrella company.

	=== External references ===		=== External references ===

Designing Buildings at 13:32, 20 June 2018

2018-06-20T13:32:54Z

← Older revision		Revision as of 13:32, 20 June 2018
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−
	= Introduction =		= Introduction =

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	= Reasons for setting up a company to offer professional or personal services =		= Reasons for setting up a company to offer professional or personal services =

−	== ~~'''~~Creating a clear ownership structure~~'''~~ ==	+	== Creating a clear ownership structure ==

	The share structure of a company creates a clear and unambiguous ownership arrangement that is publicly visible at Companies House. Where an individual wishes to share ownership with a spouse or business partner, the company’s Memorandum and Articles of Association sets out rules which govern share ownership in a way which is more clear than in an unincorporated arrangement.		The share structure of a company creates a clear and unambiguous ownership arrangement that is publicly visible at Companies House. Where an individual wishes to share ownership with a spouse or business partner, the company’s Memorandum and Articles of Association sets out rules which govern share ownership in a way which is more clear than in an unincorporated arrangement.

−	== ~~'''~~Planning for the future~~'''~~ ==	+	== Planning for the future ==

	Passing on ownership of a business can be simpler when it is a matter of transferring shares. In family-owned enterprises this can assist issues of succession as well as enabling the value of the business to be spread as appropriate amongst family members. This is undoubtedly beneficial from an Inheritance Tax point of view.		Passing on ownership of a business can be simpler when it is a matter of transferring shares. In family-owned enterprises this can assist issues of succession as well as enabling the value of the business to be spread as appropriate amongst family members. This is undoubtedly beneficial from an Inheritance Tax point of view.

−	== ~~'''~~Facilitating the sale of the business~~'''~~ ==	+	== Facilitating the sale of the business ==

	It can also be the case that a sale to a new owner may be easier to effect if the business ownership is clearly defined via a simple shareholding structure.		It can also be the case that a sale to a new owner may be easier to effect if the business ownership is clearly defined via a simple shareholding structure.

−	== ~~'''~~Minimising risk to personal assets~~'''~~ ==	+	== Minimising risk to personal assets ==

	The risk of being sued for providing negligent advice or workmanship is ever-present. Providing services through a limited liability company protects personal assets from the risk of being lost in a court case. Insurance can be taken out to provide protection in such circumstances but many people see a limited liability company as a the logical way of addressing this risk.		The risk of being sued for providing negligent advice or workmanship is ever-present. Providing services through a limited liability company protects personal assets from the risk of being lost in a court case. Insurance can be taken out to provide protection in such circumstances but many people see a limited liability company as a the logical way of addressing this risk.

−	== ~~'''~~Efficient remuneration planning~~'''~~ ==	+	== Efficient remuneration planning ==

−	All companies, including PSCs, may pay dividends to their shareholders in addition to or instead of a salary. Paying dividends ~~'''<u>~~can~~</u>'''~~ result in less tax and national insurance being paid to HMRC. Using a company can also enable an owner to spread personal remuneration over a longer period of time and this can be a very effective and perfectly legal way of minimising tax payable over a period of years. This is done by holding earnings within the company and paying salary and/or dividends over a period of years.	+	All companies, including PSCs, may pay dividends to their shareholders in addition to or instead of a salary. Paying dividends can result in less tax and national insurance being paid to HMRC. Using a company can also enable an owner to spread personal remuneration over a longer period of time and this can be a very effective and perfectly legal way of minimising tax payable over a period of years. This is done by holding earnings within the company and paying salary and/or dividends over a period of years.

−	== ~~'''~~To obtain work~~'''~~ ==	+	== To obtain work ==

	It is a fact that many clients – typically the largest companies – will only award work to individuals or contractors who offer their services through a company. There is a general perception, often misguided, that this minimises risk to the client. It is often a case of “No company, no work”.		It is a fact that many clients – typically the largest companies – will only award work to individuals or contractors who offer their services through a company. There is a general perception, often misguided, that this minimises risk to the client. It is often a case of “No company, no work”.

−	== ~~'''~~Advantages for clients~~'''~~ ==	+	== Advantages for clients ==

	Increasingly clients wish to distance themselves from any potential arguments as to whether or not an individual could be deemed to be an employee rather than an independent provider of services. Using a PSC reduces such risk although it does not necessarily eliminate all IR35-related considerations. See IR35 for more information.		Increasingly clients wish to distance themselves from any potential arguments as to whether or not an individual could be deemed to be an employee rather than an independent provider of services. Using a PSC reduces such risk although it does not necessarily eliminate all IR35-related considerations. See IR35 for more information.

−	= ~~'''~~Summary~~'''~~ =	+	= Summary =

	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.		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.
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Appointing consultants.	+
−	*Business plan.	+	* Appointing consultants.
−	*IR35.	+	* Business plan.
−	*Payroll companies.	+	* IR35.
−	*PAYE.	+	* Payroll companies.
−	*Professional indemnity insurance.	+	* PAYE.
		+	* Professional indemnity insurance.
		+	* TUPE Regulations.

	=== External references ===		=== External references ===
−	*HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].

−	[[Category:Policy]]	+	* HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].
−	[[Category:Taxation]]	+
		+	[[Category:Policy]] [[Category:Taxation]]

Designing Buildings at 07:01, 9 October 2015

2015-10-09T07:01:28Z

← Older revision		Revision as of 07:01, 9 October 2015
Line 49:		Line 49:

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*~~Appointment~~.	+	*Appointing consultants.
	*Business plan.		*Business plan.
	*IR35.		*IR35.

Designing Buildings: moved Personal Service Company to Personal service company

2014-08-01T06:40:53Z

moved Personal Service Company to Personal service company

← Older revision

Revision as of 06:40, 1 August 2014

Designing Buildings at 16:46, 8 July 2014

2014-07-08T16:46:14Z

← Older revision		Revision as of 16:46, 8 July 2014
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	*HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].		*HMRC: [http://www.hmrc.gov.uk/ir35/ Intermediaries Legislation (IR35) - Working through an intermediary, such as a Personal Service Company].

		+	[[Category:Policy]]
	[[Category:Taxation]]		[[Category:Taxation]]