Is this the end for contract workers operating through a Personal Service Company?

On the 5th March, the Government published their long awaited policy and consultation document on proposed reforms to the off-payroll working rules (known as IR35) for medium and large businesses working in the private sector to take effect from 6th April 2020.

This will affect hundreds of thousands of UK taxpayers who work on contracts for large companies (end clients), often enrolled through an agency, and who operate through their own personal service company (PSC).

Governments have long targeted these taxpayers and contracts as they perceive these to be paying less tax than their employed ...

Salary Dividend Mix for 2019/20

A popular profits extraction strategy for personal and family companies is to extract a small salary, taking further profits as dividends. Where this strategy is pursued for 2019/20, what level should the salary be set at to ensure the strategy remains tax efficient?

Salary

As well as being tax effective, taking a small salary is also advantageous in that it allows the individual to secure a qualifying year for State Pension and contributory benefits purposes.

Assuming the personal allowance has not been used elsewhere and is available to set against the salary, the optimal salary level for 20...