The limited company route will enable you as a contractor to work in the most tax efficient manner available.
Working through an umbrella company is normally best suited for short term contracting, not for those who want the independence and rewards that the life of the contractor brings. An umbrella company works as an agency for the contractor, accepting their time-sheets and then paying the contractor after deducting PAYE tax, Ni and the umbrella fee.
Every situation is individual and when making the decision on which route to take first, it is advisable to speak to someone who has both the accounting and tax knowledge needed to advise on the best route for you.
Working through a limited company is not as easy or simple as working via an umbrella company but for the majority it will mean you are financially better off.
Running your own company enables greater tax planning which will result in a higher level of take home pay. The company will normally have the ability to benefit from registering on the VAT Flat rate scheme – this would mean that a £80,000 12 month contract could generate up to £4000 in additional income.
A limited company brings with it various responsibilities for you as a director, more information on directors’ responsibilities can be found at Directors’ responsibilities.
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 email@example.com or request a callback.