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Your job your decisions
Limited Company
LIMITED COMPANY
Receiving payment via your company
For numerous contractors, utilizing a limited company for contracting is among the most tax-efficient payment methods. Whether you're new to contracting or have been freelancing through an umbrella company, establishing your own limited company might offer the most advantages.
Starting a limited company can be approached in various ways, but opting for a specialized contractor accountant can alleviate some of the administrative tasks and paperwork associated with running a limited company.
BENEFITS
Why work with us?
Flexibility
When you're contracting, you have the flexibility to work on your own terms, whenever you choose.
Full Protection
Umbrella services provide the security comparable to that of a full-time employee.
Fast Payments
Receive your payment weekly through a method that fits your preferences.
Hassle Free Tax
In full compliance with all UK legislation, giving you peace of mind.
CONTRACTOR CHOICE
Getting Started with your company
Establishing a limited company as a contractor means taking on the roles of director and shareholder in a business. You have the flexibility to compensate yourself through a combination of salary and dividends, which are disbursed to a business bank account as post-tax profit. Dividends are taxed at lower rates and are not subject to National Insurance, potentially resulting in a higher take-home pay when operating under a limited company.
Operating a limited company entails regular document filing and paperwork, as well as the necessity of a business bank account. Despite this, the benefits can be significant, as registered businesses are often viewed as more credible by clients and agencies. Additionally, owning a limited company offers more opportunities for growth.
The optimal choice depends on factors such as your contract terms, duration, rate, and industry. For those in the public sector subject to IR35, an umbrella company may be preferable. Conversely, if you anticipate a longer contract duration and higher pay rate, a limited company is likely the better option.
We're here to help you evaluate the advantages and disadvantages of each option and can provide you with either of the aforementioned accountancy services. Reach out to us today to begin the process.