Question: Brett, I have started up a small business. I purchased a manually operated printing press from overseas last year. It is operated by one person. I take the printing press to client’s premises and I custom-make their business cards on the spot. I make a lot of money. My new accountant put her head in her hands and said, "this is a PSI nightmare". Then she spouted off a bunch of tax stuff. It seems that the main issue is that I have one major client. What exactly is 'PSI'? Is it too late to sort things out? Answer: Don't be disillusioned. The PSI ("Personal Services Income") rules are difficult to understand at first. However, soon you'll find them incomprehensible. Perhaps the Labor Government will help small business and cut the red tape (just joking). The PSI rules are meant to extract tax out of independent contractors at the same rate as employees - even if they're using a company or family trust (or some other business structure). In effect if the money you make is from the sweat of your brow then you have to pay tax on 100% of the money your company makes. As you only have one employee (we may be able to help you get more) and one main client, your accountant is correct, you have a problem. However, all is not lost. For our Platinum Members, our PSI lawyer, Phil Simmonite, explains how PSI works and how to structure your affairs to comply with the rules.