Your job your decisions
Limited Company
LIMITED COMPANY
Getting paid through your company
One of the most tax-efficient ways to get paid for contractors, according to many, is through a limited company. Whether you are just starting out as a contractor or freelancer or have been working via an umbrella company for some time, creating your own limited company may be the best option for you to conduct business.
There are various ways to form a limited company, however hiring a specialised contractor accountant can reduce some of the paperwork and administrative labour involved in running a limited company.
BENEFITS
Why work with us?
Flexibility
You can work when and how you want when you contract.
Hassle Free Tax
You don't need to worry because it complies with all UK laws.
Full Protection
You have the security of a full-time employee with the help of umbrella services.
Quick Payments
Pay yourself each week using a technique that works for you.
CONTRACTOR CHOICE
Getting Started with your company
When you establish a limited company as a contractor, you take on the roles of director and shareholder. Salary and dividends, which are paid into a business bank account as after-tax earnings, can be used to pay yourself. One factor contributing to a limited company’s ability to provide a higher take-home pay is that the tax rates for dividends are lower and they are not subject to National Insurance.
If you select the limited company option, you ought to be able to open a business bank account. Limited firms need to file documents and complete paperwork on a fairly frequent basis. Although there are greater options for expansion by owning a limited company, clients and agencies tend to view registered enterprises as more trustworthy. As a result, this choice can be very profitable.
The choice that is best for you will depend on the details of your contract, including its length, rate, and sector. If you work in the public sector and are subject to IR35, an umbrella company might be your best option; but, if your income is higher and you will be contracting for a longer period of time, a limited company is probably a better choice.
We can assist you in weighing the advantages and disadvantages of each choice and eventually offer you one of the aforementioned accounting services. To begin, get in touch with us immediately.