When taking the first steps to becoming your own boss, one of the first decisions to make is whether you start out as a sole trader or as a limited company. 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 Integro Accounting?
Integro Accounting is the UK’s only specialist provider of fixed fee, limited company accountancy services for contractors, consultants and freelancers that was established to an award winning standard – our Practice Manager, Maria Hickmott FCCA, won The British Accountancy Awards’ ‘Accountant of the Year’ in 2011.
We were set up with the vision of providing a service that is the ultimate for the dynamic, busy professional of today in a language you understand.
Integro Accounting have designed a bespoke service for the contractor who is always on the go; never forgetting that one size will never fit all.
The relationship you have with your accountant is the most important factor in our service which is why we will always offer unlimited contact with your own personal accountant; whether that contact is via the phone, email or face to face.
We have our 3 offices located in London, the South-West and on the Bedfordshire and Buckinghamshire border. There are also meeting locations in many of the major cities and towns across the Home counties, South-West and South Wales, all conveniently placed so that you never have to travel far to meet your accountant.
If you have any questions about contracting or would like to find out more about how Integro Accounting can help you and business please call Christian on 01525 303984, email firstname.lastname@example.org or request a callback.