Get richer by taking a PAYE cut

Pay cutThere’s nothing wrong with trading through a limited company, if you’re really trading.

Indeed, that’s exactly why the government makes them available to all who need them.

But there is a problem when a so-called personal service company is used to disguise what is really an employment relationship. If that’s done PAYE is avoided and the result is that in most such cases little or no national insurance is paid by the employer and employee that are party to this abuse.

That can save around 20% overall tax on a salary – and that’s something the country can ill afford.