Make the Change from Employee to Contractor

Provided that you earn over £20 per hour, then the most tax efficient way for you to work is through a limited company. Whilst if you earn less than £20 per hour, or you only intend to be contracting for a short period of time (i.e. 3 months or less), then an umbrella company will be the better option for you.

To see a comparison of these options simply request an Umbrella vs. Limited income comparison here and I’d be happy to send you the calculations based on your contract rate.

Our “everything done for you” service really does take care of everything for you. If you decide to appoint us, we’ll get you set up and trading in no time. We will:

1. Form your limited Company (1-2 hours)
2. Open a business bank account for you
3. Register you for VAT (if required)
4. Register you for PAYE
5. Review your contract for IR35
6. Organise Professional Indemnity Insurance
7. Provide access to our online portal for you to invoice your clients and record expenses

All you’ll need to do is log your expenses and invoice your clients. Simple!

We take care of it. Since we started back in 2006, our goal has always been to make contracting through a limited company as stress-free and easy as possible, so we’ve developed a service that takes care of everything.

We do all the paperwork and administration for you, so you can concentrate on your new career as a contractor.

Our service includes:

• Quarterly VAT returns
• Annual Personal Tax Return
• Monthly Payroll & Real Time Information submissions (RTI)
• Annual Statutory Accounts
• Filing all statutory returns including Corporation Tax Returns
• Dealing with all correspondence from HMRC & Companies House
• Acting as your registered office
• Providing advice on IR35 & S.660

In addition to all this you’ll also benefit from:

• Unlimited Tax Advice
• Online portal – create & email invoices, log expenses and pay yourself anytime, anywhere
• HMRC tax investigations service
• Unlimited IR35 Reviews (worth £175 each)

The IR35 legislation looks at your relationship with your end-client and tries to determine (through your contract and working practices) whether you are truly self-employed or an employee of the client “disguised” behind your limited company.

Yes, but don’t worry we can do that too. As part of our service, we will have your contract reviewed by our IR35 experts to determine whether you are ‘inside’ or ‘outside’ the IR35 legislation.

Inside or outside IR35 – how will it affect me?

If you’re outside IR35 then you will benefit from the tax advantages of a limited company discussed above. The vast majority of contracts we review are outside IR35.

If you’re inside IR35 then the tax benefits of operating through a limited company are reduced, because all your income will be subject to PAYE tax.