Report 9: How to use personal service companies

It’s generally true to say that the poor downtrodden wage – or salary – slave gets the roughest deal from our tax system. Subjected to high rates of National Insurance contribution and a system known as PAYE (sometimes nicknamed “pay all you earn”, or “pay before you earn”) that gives little or no room for manoeuvre in terms of tax planning, they are very much an underclass, although they are in fact the vast majority in terms of numbers amongst taxpayers. No wonder there was a backlash from the more savvy amongst this class, which gathered momentum during their 1990’s. And the form this backlash took was the increasing use of Personal Service Companies.