Contractor Limited Companies Explained
We understand how daunting, as a contractor, it can be to grasp all the legal, financial and fiscal aspects of starting and running a new limited or umbrella company.
The first question you need to ask is what structure will be right for your new contracting business? A Limited Company or an Umbrella Company? And what is the difference?
We can help you decide which structure will be the most tax efficient and serve your needs best.
Do you want to know:
- What is a Limited Company?
- What is an Umbrella Company?
- What are the advantages and disadvantages of Limited vs Umbrella Company?
- What does the IR35 legislation mean?
- What are the benefits of contracting?
There are many aspects that need to be considered when you decide to start your own company and we understand how complex it can be to navigate through all the legal and financial requirements. We are here to help and guide you through – from initial set-up to ongoing management – you will find we provide a professional service with competitive pricing and targeted advice that adds value to you.
If you have decided a Limited Company is right for you, then the next step is to understand the scope of what is required, both to set one up and for ongoing management.
Limited companies are quick and easy to set up, but this may seem overwhelming when you start to investigate your options, so we have summarised a number of simple steps to illustrate all that is required – from how to set up a limited company to ongoing management and taxation advice.
The complexities of being a contractor are increasing
The rules governing IR35 are becoming more stringent, especially if you’re contracting with Government departments. This, along with the implications for more stringent checks on the private sector, may be enough to drive contractors to consider forming their own limited companies.
Running your own contractor limited company is going to get more complex too. The Government’s Making Tax Digital Scheme – or quarterly reporting online, as it’s known generally, makes the need for having an efficient and cost-effective contractor accountant working along side you, even more important. Managing your contractor business tax reporting on a quarterly basis is extra work, in addition to the annual tax return. However, contractor accountants like Tax Agility have got this process down to an art. Through a cloud-based accounting service like Xero, we can make this potentially cumbersome reporting process very straight forward; taking away the burden of laborious tax preparation, but also giving you full visibility of how your business is performing.
Xero is a powerful new way or organising your business account and finance, click on the link to read more.
First Consultation for Free
We believe that in order to add value, we first need to understand your business and your needs. So, we offer our first consultation free to allow us to learn about your company and your personal financial circumstances and create an accounting solution to suit you.
Please contact us today regarding your limited company requirements, on 020 8108 0090 or complete the enquiry form and we will call you back.