{"id":9831,"date":"2023-01-22T07:50:21","date_gmt":"2023-01-22T07:50:21","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=9831"},"modified":"2024-05-17T15:37:31","modified_gmt":"2024-05-17T14:37:31","slug":"personal-service-company","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/personal-service-company\/","title":{"rendered":"What is a personal service company?"},"content":{"rendered":"
\n Last updated: 17 May 2024<\/strong>\n <\/div>\n \n

A personal service company is a limited company that is set up by a sole contractor or other self-employed individual to provide a specialist professional service to client organisations. Typically, the individual will be the only director and the sole (or majority) shareholder of the company.<\/p>\n

Whilst not defined in law, HMRC coined the term \u2018personal service company\u2019 when IR35 legislation came into effect in 2000. Structurally, it\u2019s just a normal limited company, usually with a single director who also owns all or most of the company\u2019s shares.<\/p>\n

You may see the abbreviation \u2018PSC’ used on other websites when discussing personal service companies. However, this shortened form is more commonly associated with \u2018people with significant control\u2019 in limited companies. To avoid confusion, we will not use the abbreviation \u2018PSC\u2019 in reference to personal service companies throughout this post.<\/p>\n

Who would use a personal service company?<\/h3>\n

Personal service companies are most often used by self-employed people who work as contractors, consultants, and freelancers in the following industries:<\/p>\n