Contractors, Consultants, Interims, Freelancers use PSCs for their project work. They are a tax efficient method method to work with income divided between salary and dividends. When a contractor takes on a project with a client there is no employment relationship rather a Business to Business relationship. This allows skill contractors to take on projects quickly. PSC will be a UK registered company with the Contractor a director of this company. The director will be the shareholder though shares can be split. The Bank Account and all its details are managed by the Contractor. Your PSC is seperate to those who run it.

It is the most tax efficient method of working outside of IR35

A wide range of expenses can be claimed against

Financial security of limited liability without personal liability

Appeal to a wider range of potential clients

Capital can be raised through investment

Your company name is protected by law

Various classes of shares can be issued

Professional status can be enhanced through running a PSC

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Once you know a limited company is correct for you:

Choose a name for the limited company that falls in line with your service or product

Choose the directors and secretary

List out and decide who the Shareholders are

Prepare company documentation as to the structure and how the company will be run

Archive company records and check what needs to be completed in the tax year

Register your company

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