If there are two or more of you thinking of taking these steps, then you have to make the slightly different decision of whether to start as a partnership, a limited liability partnership, or a limited company.
Most freelancers start out on their own, because they know that they will be happier working as their own boss, choosing who they work with, and on projects that really excite them. Many freelancers will have a collection of clients that they work with onsite and remotely.
The advantages of working as a sole trader will be that the accounting is a little simpler and there is less bookkeeping. Once a year you will need to add up all your income and all your expenses and submit these figures to HMRC on a tax return; and it is likely that you will have to make a payment.
The advantages of working via your own limited company will normally mean paying less to HMRC and more of your income will end up in your back pocket. Also, the larger companies requiring freelancers for projects prefer to deal with limited companies ahead of sole traders, this is mostly to do with their own internal procedures and removing various employment law risks.
Whenever you reach the point where you’re asking this question, doing the research to understand your situation fully is always a good starting point but requesting specialist advice is a must, please don’t hesitate to contact us to discuss your options and find the right solution for you.
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 email@example.com for more information on how we can help you.