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What is a PSC?
The term PSC is used to describe a common type of limited company that has been established by contractors, consultants and other types of self-employed workers. In short, a PSC sells the work of an individual or small group of individuals, and is owned and operated by that individual or small group of individuals as a limited company.
The term PSC was originally used by HMRC in relation to the introduction of the IR35 legislation back in 2000. You can read more on this topic below.
How does IR35 affect a PSC?
A crucial element in classification as a PSC or limited company contractor is your IR35 status. The IR35 status determines whether you are considered to be a ‘true contractor’ or a ‘disguised employee’ and this is assessed on an assignment by assignment basis. IR35 is an assessment of the working practices of your role, and it basically says that if you look and feel like an employee, then you should probably be taxed like an employee. Therefore if you are inside IR35 you won’t be able to pay yourself a dividend from your PSC. Please follow this HMRC link for more information: https://www.gov.uk/guidance/check-employment-status-for-tax.
IR35 for Public Sector Workers
From 6th April 2017, the way that IR35 status is classified for public sector contractors changed. Rather than deciding yourself, as the director of the PSC, whether or not your contract falls inside IR35, the decision is now made by the public sector body who must inform the Agency that pays you. Those working in the private sector or using a fully PAYE umbrella company are not affected by these changes. Please follow this HMRC link for more information: https://www.gov.uk/government/publications/off-payroll-working-in-the-public-sector.
Here at Sellick Partnership we believe in assisting our contractors wherever we can and as such we have undertaken a review of PSC providers. Please find below the details of Sellick Partnership’s list of approved providers. Please note the below companies do charge for their services.
This list has been compiled following a compliance review of the above providers. It is entirely your decision which provider you engage through and we advise that you seek independent advice.
Should you choose to use another provider not listed they must provide all necessary documentation including, but not limited to; Certificate of Incorporation; VAT Certificate; Business Bank Account Details; Valid Insurance Documents (your Sellick Partnership Consultant can advise you of the level of insurance required). It is your responsibility to ensure that they comply with all relevant legislation. Sellick Partnership will not be liable for any losses, costs, claims, expenses, penalties or any other liability incurred by that provider, including those which may arise as a result of your use of this third party provider.
The above list will be reviewed to ensure our contractors are provided the best service and as such the above list not permanent. Sellick Partnership reserves the right to amend this list should a provider fail to satisfy either a compliance check or levels of service deteriorate. Although Sellick Partnership has conducted a compliance review of these providers we have not conducted a full audit. Compliance within the recruitment industry is complex and subject to changes within best practice, as such we advise that you should conduct your own checks to satisfy your own requirements. Sellick Partnership Group cannot accept responsibility for any claims, demands, actions, proceedings, damages, loss of profit, consequential, direct or indirect costs resulting from the use of any of these providers.