Limited Company Registration Guides for New Contractors

Contractors are faced with three options upon accepting their first contract: invoice as a sole trader, through an umbrella company or their own limited company. By far the most enterprising way of becoming a successful contractor business is the latter.

Becoming an official business can seem like a huge leap of faith. But the tax advantages available once you're operating as a limited company contractor, not to mention the professional clout of having 'Ltd.' after your name, far outweigh the initial psychological battle.

Should I create a limited company?

The UK government has a soft spot for those endeavouring to find their own financial feet. As such, the government has created many, many tax breaks to encourage people to become a limited entity.

In the vast majority of instances, an accountant will not only help you create your company, but if you engage their services, they'll do everything for you.

In the same breath, many accountancy services will also help you through the taxation minefield for your self-assessment. This ensures that you're making the most of the relief on offer, yet remaining 100% compliant.

Forming your limited company and hiring a contractor-savvy accountant can seem daunting. Our guides will help you decide if it's right for you and shed more light on why those freelancers who've ventured down this road before you have never looked back.

How Should Contractors Run Their Limited Company?

Through their own limited company is by far the most tax efficienct for a contractor to work. But there's more to it than simply forming your organisation. This guide considers several scenarios to help you decide which aspects are the most beneficial for you and your business.

Author: John Yerou

John Yerou is a pioneer of contractor mortgages and owner and founder of Freelancer Financials, Contractor Mortgages®, C&F Mortgages and Self Employed Mortgages, trading styles and brands of the award-winning Mortgage Quest Ltd.


Thanks for your enquiry,
we’ll be in touch soon!

020 8421 7999
Request a Call Back

Incorporated in England & Wales. Company Registration Number: 5013239 | Data Protection Act Registration: Z9469673

Consumer Credit License (CCL): 562464 | Registered Office: Avondale House, 262 Uxbridge Road, Hatch End, Pinner, Middlesex, HA5 4HS