Glossary

IR35

IR35 also known as the “intermediaries legislation”. This piece of legislation to is designed to prevent tax avoidance for any contractor working for an end-hirer via an intermediary (i.e. a Limited Company or Personal Service Company). In a nutshell, it is aimed to stop contractors working as disguised employees and any assignments “inside IR35” or “caught by IR35” must make a deemed payment to HMRC roughly equivalent to the taxes that would have been paid had they been employed by the hiring company.

Other common terms

Contractor Accountant

Contractor accountants are specialists who provide tax advice and accountancy services to independent professionals who work for themselves often via their own limited company. The contractor accountant can provide

Personal Service Company (PSC)

This is another term used to define a limited company and is most commonly used with reference to a company that contains a sole director/shareholder

PAYE

Meaning ‘Pay As You Earn’, this term refers to the method of paying Income Tax and National Insurance Contributions (“NICs”) in the UK. Your employer