Limited Company Contracting Made Simple!

A Personal Service Company (PSC) is a business structure in which a single contractor, freelancer, or professional offers clients services through their limited company rather than working as an employee or a sole trader. This setup provides a formal business entity for independent contractors and offers several advantages in taxation, legal liability, and professionalism.

With a PSC, the individual effectively becomes an employee of the company and can contract its services to various clients. This model is prevalent among IT contractors, consultants, and other professional service providers. It allows individuals to control their finances more, potentially resulting in tax efficiencies and separating personal assets from business liabilities.

Certainly! It’s possible to set up a Private Limited Company with just one person. This arrangement provides several tax benefits and gives you the flexibility to manage your business as you see fit.

Working via a Personal Service Company (PSC) offers you several benefits. This setup allows you to operate more autonomously than direct employees. You can enjoy better tax efficiency by deducting certain expenses before taxation, which can increase your take-home pay.

You can choose your clients and projects, enabling you to focus on the most rewarding or profitable work. This structure also provides financial protection by separating your personal assets from business liabilities. Additionally, working through a PSC can enhance your professional image, presenting you as a business entity rather than an individual, which might help secure higher-calibre projects.

To establish your own Private Limited Company, you must have a registered office address, at least one director (who can also be a shareholder), a company secretary, and the Articles of Association. Additionally, registration with the Companies Registration Office (CRO) is required. Our team of dedicated experts is here to make this process easier for you. We take care of all the required paperwork and setup procedures, leaving you with just one responsibility – selecting your business name.

IR35 is a tax legislation that identifies contractors and businesses that avoid paying the appropriate tax by working as ‘disguised employees’, i.e., employees who work similarly to full-time employees but through their limited company. Determining whether you fall inside or outside IR35 can be complicated, and getting it wrong can result in hefty penalties.

We work closely with the contractor, the recruiter and end hirer to ensure IR35 compliance, giving everyone in the supply chain the IR35 peace of mind that is needed, regardless of who is responsible for the determination.

Permanent Establishment (PE) refers to a scenario where a company is deemed by local tax authorities to be engaged in sustained and taxable business activities in a country, despite not being formally incorporated there.

While the OECD provides general guidelines on what constitutes a permanent establishment and its associated risks, it is ultimately up to each country to determine if a multinational company is operating illegally within its borders.

Once a company is considered to have a PE in a foreign jurisdiction, it faces significant consequences which may include, among others, the following: back taxes and interest, penalties, damaged reputation, incorporation, increased observation etc.

Our experts in tax legislation will be happy to advise you on issues related to PE in order to avoid undesirable consequences for your business.

If you already have your own Personal Service Company, we can work with that. We can seamlessly transfer all Revenue dealings to us, ensuring a smooth and hassle-free transition for you.