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.
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.
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.