If you’re a contractor who can work outside of IR35, working through your own limited company is by far and away the most tax efficient option for you.
This is often referred to as operating a Personal Services Company or PSC and would see you become the director of the limited company.
By doing this, you can take your income as dividends which aren’t subject to National Insurance and also benefit from a lower tax rate than PAYE income.
You can also claim tax relief on a wider range of expenses. The result is higher take home pay than with any other service.
As the director, you have complete control over your company’s finances and all for just one monthly fee.
PayStream’s My PSC service provides you with all of the accountancy and administrative support you need, including setting up the company, invoicing, tax returns and much more.
So there you have it, hopefully you’ve now got a better idea about working outside of IR35.