Limited companies for contractors
There are many reasons why you should consider moving from a permanent role to a limited company. Some of the benefits of contracting are:
- As a contractor, you can work in various environments to gain experience and specialise in a specific area, skill, or industry.
- You can grow your business network and gain experience working with various people and for different companies.
- You can set your hourly or day rate and increase your earning potential.
- As a contractor, you have much more control over the hours you work and can set your own schedule, which can create a better work/life balance.
- The variety that comes with working in contract roles increases your industry knowledge, experience and skills base.
Benefits of working via a limited company?
There are many benefits of moving from a permanent role to becoming a director of your own limited company:
- Greater financial control – You’ll have complete control over your business finances and can make critical financial decisions yourself.
- Growth potential – A limited company gives you the foundation to build a successful business over time. You can employ new people and look to develop your business while keeping the same name, company portfolio, etc.
- Increased take-home pay – Contracting via a limited company is more tax-efficient than operating via an umbrella company, as you can pay yourself a combination of salary and dividends.
- Credibility – Clients, suppliers, and investors often perceive limited companies as more stable and reliable than sole traders or partnerships.
Our sister company offers expert accountancy for your limited company
If you’re moving from a permanent role to a limited company and looking for an accountant to assist with your limited company accountancy, our sister company, Churchill Knight & Associates Ltd, can help. As a limited company director, you must complete many strict bookkeeping and filing requirements and adhere to many tax return deadlines.
Churchill Knight & Associates Ltd’s limited company accountancy service is perfect for contractors and freelancers in the UK. Here are just some of the things they can help you with:
- Your own dedicated Account Manager
- Company incorporation within 24 hours (if required)
- Payroll
- Submission of RTI
- Registration for PAYE, VAT and Corporation Tax
- Support with dividend documentation
- Quarterly VAT returns
- Reference for mortgage
- Reference for VISA
- Assistance with HMRC correspondence
- Assistance with business bank account set-up
- Year-end accounts
- Self-assessment tax return
- 2/7 access to a secure, mobile-responsive online platform
- Phone and email support
- And more!
Please click here to learn more about our sister company, Churchill Knight & Associates Ltd’s limited company accountancy service.
Have you considered contracting via an umbrella company?
If you are considering moving from a permanent role to a limited company, try using an umbrella company first to see if you like contract work. Using an umbrella company is the easiest way to get paid as a contractor. When you register, you become an umbrella company employee, and they will deduct your tax and National Insurance Contributions (NIC) and pay them to HMRC on your behalf. You will then receive a payslip with a list of the deductions to your salary.
Using an umbrella company offers a very low-risk way to determine if you would like to fully enter contract work. The umbrella company will take care of all of the administration and compliance, giving you more time to focus on your different assignments.
Looking for an accountant? Contact Churchill Knight & Associates Ltd today!
If you require the services of a professional accountant with FCSA accreditation, our sister company is the perfect fit. Founded in 1998, Churchill Knight & Associates specialises in multiple accountancy services, including contractor accountancy, CIS limited company accountancy, contractor accountancy, accountancy for landlords, and specialist services for landlords.
Please click on the button below to be taken to the contact page on the Churchill Knight & Associates Ltd website. Alternatively, please call 01707 871622 and ask our friendly team to discuss your requirements with you as part of a free, no-obligation consultation.
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