Personal Service Companies
Personal service companies are what the Government, and HMRC, call limited companies for individuals, such as contractors.
Those contractors using these type of limited companies can claim for all sorts of things against tax.
Indeed, it is said that limited company contractors pay £10,000 a year ,on average, less tax than an umbrella company contractor.
Par for the course for an umbrella company contractor owuld be retainging 65% of their income.
For a limited company contractor it would be 75%. This can be increased to 85% with efficient tax planning.
Those contractors using offshore umbrella companies, and those using limited partnerships, can retain 85% or more.[caption id="attachment_857" align="alignnone" width="259"] Personal Service Companies for UK contractors[/caption]