Donald Reid Group

IR35 Personal Service Companies

The "IR35 rules are intended to prevent the avoidance of tax and national insurance through the use of personal service companies and partnerships.

The rules do not stop individuals selling their services through either their own personal companies or a partnership. However, they do seek to remove any possible tax advantages from doing so.

In this fact sheet IR35 Personal Service Companies, read more about:-

  • The removal of tax advantages 
  • When do the rules apply? 
  • The planning consequences of IR35 
  • Employment versus self employment 
  • Exceptions to the IR35 rules

You should consider the following points, when taking the IR35 rules into account

  • Income and expenses 
  • Timing of corporate tax deductions 
  • Pension contributions 
  • Extracting funds from the company 
  • Planning in the run up to the tax year end on 5thApril 
  • Partnerships 
  • Penalties

If you would like to discuss IR35 and your business, please do get in touch with the team at DRG Chartered Accountants. We would be delighted to hear from you.


DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.



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