Q. I’m currently operating a PSC as a limited company with a contract outside IR35. If my next contract post April 6th is inside IR35, the agency would deduct Tax/NI and pay a deemed salary into my business. How do I actually take that money out of the business? Would it be better to get them to pay me personally?
A. Please refer to HMRC’s guidance regarding how a company can pay itself where it is considered to operating inside of IR35 under the public sector rules from 06 April 2017. You could speak to the agency regarding being paid as an employed individual. Alternatively you could consider operating through an umbrella company whereby you are employed by the umbrella company itself. Whether or not it would be better for you to be paid as an employed individual may depend on what future plans you have for your limited company in the long run.