The initial question of many first time contractors is: from this hourly rate / day rate contract I have been offered, what will I take home?
This is the proverbial piece of string question; we have developed an online calculator to give you a good indication of what you should expect to take home from one tax year to the next.
The calculator can only give you an indication of your take home. At Integro Accounting we know every client is unique and strongly advise you to contact us and spend just a few minutes confirming your situation. We can then give you an accurate tailored answer to what you can expect to take home.
I have a contract of £xyz, should I be taking the umbrella route or the limited company option?
As every client is different, there is no magic number where we can say ‘oh that means you have to take this route’ when answering this question.
The general rule of thumb is for a contract that lasts longer than 3 months or generates a revenue stream greater than £25,000 the limited company option will be better financially for the contractor; but please do seek professional advice if you are taking this decision.
If you contact one of our accountants and spend a few minutes going over your situation, we will then advise you free of charge which route is going to be best for you and supply you with the figures and our calculations to back this up.
I want to switch from working via an umbrella to working through my own limited company, is this easy?
It is surprisingly straight forward to do this; the first 3 steps are simply to:
- form a limited company
- speak with your client and / or agency, advising of your intent
- open a business bank account
Once you have the above underway, then it is normal for you to arrange business insurances for the company and to do a little research on who to retain as tax and accounting advisor; at this point we strongly recommend that you contact us for one of our free face to face meetings.
How do I pay myself?
There are a collection of different ways that your company can pay you, the two main ones are salary and dividends. You can pay yourself a salary as director and dividends as a shareholder as well as reimbursing yourself for any expenses you incur on behalf of the company.
The first time you speak with your accountant should start with them taking the time to make sure they understand your situation and work out the most tax efficient method for you to be paid by your company.
Your accountant should make sure you understand and are happy with how your company is paying you, whilst also making sure it is the most tax efficient way available.
Why choose Integro Accounting?
Integro Accounting provide a fixed fee limited company accountancy service to contractors, freelancers and consultants. Integro accounting was founded on the word integrity. Clients rate us 5/5 on Google and we pride ourselves on building a completely transparent and personal relationship with our clients. For just £100 + VAT per month, you can have a partner integral to your contracting career.
- All-inclusive price – no hidden charges, one comprehensive package.
- A dedicated accountant – one person who will support you every step of the way.
- Unlimited face to face meetings – offices available across the UK.
- FREE award-winning accountancy software – a FreeAgent license provided to all clients.
- 24/7 access to your accounts – complete visibility of your accounts whenever and wherever you are.
Speak to one of our expert accountants today on 0207 0962659 or email firstname.lastname@example.org for more information on how we can help you.