There is no official definition as to what a personal service company is (PSC) – but it usually refers to a limited company which has been set up to provide the services of a single contractor, who is usually the sole shareholder and company director of the business.
The term ‘Personal Service Company’ also features heavily in the context of the government’s rules to determine employment status – also known as IR35. These rules ensure workers are classified correctly as employed, or self-employed and pay the correct amount of employment tax.
A PSC, as a company limited shares, must meet Companies House requirements and the Companies Act 2006.