Company Tax Saving Tip #2 - Get Out Of The PSC Trap
If your business has been classified as a personal services company (PSC), I'm sure you're aware of your heavy tax rate of 33% as opposed to the 28%.
The simplest and easiest way to get your way out of this trap, is to employ at least 3 non-related (not related to the owner or shareholders). This automatically pull you out of the PSC classification and bring you back to standard taxation.
Obviously, the viability of such a move would depend completely on your turnover and what makes sense financially. Do the maths and see if it works in your scenario.
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