Broadly IR35 (the Intermediaries Legislation) requires personal service companies (usually single person company) to pay the director a salary of at least 95% of some types of turnover.  This applies to turnover which would be employment income were it not for the personal service company sitting between the worker and the client.

The March 2016 budget announced that from 2017 there will be a requirement if the client is a public sector body for that body to deduct PAYE and NI from the payment to the personal service company.

David Wilsdon