Moving from umbrella to limited

Benefits of working through a limited company

If you are working on assignments outside IR35, moving from umbrella to limited and setting up your own limited company has many benefits.

• Tax efficiency and planning – Limited company directors can pay themselves tax-efficiently with a combination of salary and dividends. There are also plenty of tax planning opportunities that are not available to umbrella company contractors.
• Credibility – Limited companies are often preferred by customers, clients and suppliers due to increased credibility.
• Claim legitimate business expenses – Trading through a limited company means you can claim various business expenses and reduce your taxable profit by deducting the cost of the allowable expense.
• Limited liability – Limited companies are separate legal entities, which means if the company becomes insolvent, the limited company is declared bankrupt, and the director’s and shareholders’ personal assets are protected.
• Protection of your company name – Once you have registered your limited company, no one else can use your company name. This is particularly useful for building a brand and establishing yourself as a reputable business.
• Shares – You can exercise different share classes to attract investors or divide the company’s ownership.
• Selling your company – Selling your limited company is a very straightforward process as it is a separate legal entity.

Our sister company can help you get set up

If you’re moving from an umbrella to a limited company and looking for an accountant to assist with your limited company accountancy, our sister company, Churchill Knight & Associates Ltd, can offer you a comprehensive and straightforward service. They have carefully constructed their limited company accountancy service to suit contractors and freelancers at each career stage. And they do not charge any upfront costs, which means you can concentrate on your upcoming role and have your limited company administration taken care of.

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
• 24/7 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.