If you have chosen to set up your own personal services company (“PSC”), you will be responsible for the following (among other things):
- Registering your company with Companies House
- Producing your end of year accounts
- Completing your own tax returns
- Securing your own insurance including Professional Indemnity (PI) insurance of at least £1,000,000
- Setting up a business bank account
- Registering for VAT as and when this becomes necessary
We strongly recommend an experienced accountant is consulted and appropriate tax advice sought.
By setting up your own PSC, you are providing services through and on behalf of your PSC. Huntswood will have entered into a ‘contract for services’ with your PSC for your services.
Please take advice on this before moving forwards with your own limited company.
Providing service to an end client as an associate is very different to being an employee of that client because you do not have a direct contractual relationship with Huntswood or the client. It is therefore helpful to understand the contractual relationships between the parties involved in the provision of services. An overview of the contracting model can be found here.
PROFESSIONAL INDEMNITY INSURANCE
Huntswood requires all PSCs to have PI insurance with a minimum cover of £1,000,000. Whilst you are free to choose a provider of your choice “Kingsbridge” offer a comprehensive policy with a 20% discount for our associates.
If you would like a quote or further information regarding this offer, please call Kingsbridge on 01242 808740 or visit huntswood.kingsbridge.co.uk
INVOICING PROCESS – PSC
The arrangements for invoicing and payment of fees by Huntswood to your PSC will be as set out in our contract with your company based on the agreed rates.
The amount due to your PSC will be paid on the last working day of the month for the previous month worked (e.g. time worked in October would be paid on the last business day of November).
Please be aware that as a PSC associate, your tax status will be determined in accordance with the Off-Payroll Working Rules (“IR35”). As of April 2021, the end client will be responsible for determining the IR35 status of all associates and Huntswood will be responsible for deducting the relevant Tax and National Insurance contributions at source based on the determination made. It is important that you understand the impact IR35 will have on your pay and, as such, it is important that you share your status determination with your accountant and discuss the relevant implications.