Make the Change from Employee to Contractor
Discover How to Switch from Full Time Employee to Independent Contractor and
Retain More Of Your Contract Income By Setting Up a Limited Company.
Limited Company setup in 2 hours
Keep More of your Contract Income
Reduce Your Tax Liability
Save time – NO admin or paperwork to do
Clear, no nonsense explanations
I’d hazard a guess that as a full-time employee you’re probably a little concerned about making the move from employee to Contractor. You might also be unsure whether an Umbrella Company or a Limited Company is the best option for you.
On this page we will answer all your burning questions…and if I miss anything then you can request a call back and I’ll happily answer any additional questions you have. Let’s start with your trading options as a Contractor.
Umbrella vs. Limited Company – What’s your Best Option?
Provided that you earn over £20 per hour, then the most tax efficient way for you to work is through a Limited Company. Using a Limited Company you are legally entitled to pay yourself a low salary and then draw the rest of your earnings as dividends, which are not subject to National Insurance (NI) Contributions. You’ll also benefit from being able to claim back a wider range of business expenses that will further reduce your tax liability.
With a Limited Company you get to keep more of your contract income, depending on your individual tax situation.
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.
Setting Up A Limited Company – What do you need to do?
Setting up a Limited Company is more involved than using an Umbrella, however our “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:
- Form your limited Company (1-2 hours)
- Open a business bank account for you
- Register you for VAT (if required)
- Register you for PAYE
- Review your Contract for IR35
- Organise Professional Indemnity Insurance
- 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!
What about all the Paperwork and Hassle of Running a Limited Company?
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:
Access to discounted professional indemnity insurance (from Ntegrity Professional Insurance)
Unlimited Tax Advice
Online portal – create & email invoices, log expenses and pay yourself anytime, anywhere
HMRC tax investigations service
Unlimited IR35 Reviews (worth £150 each)
What is IR35?
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.
Do you need to have your Contract Reviewed?
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.
How much could you Earn through a Limited Company?
Depending on your personal tax situation, you could retain more of your contract income through a Limited Company. If you’d like a personal illustration showing exactly how much you could earn then simply complete the form opposite or call me on 0800 954 2101.
Enter a few simple details and you’ll get:
A Personalised Income Illustration
Free Guide to Contracting (see below)
30 minute Phone Consultation with an Expert Advisor
(if required) to answer any specific questions you have
Not Ready Yet? – Download our Free Guide instead.
Why not get started with a copy of our comprehensive ‘How to Setup a Limited Company for Contracting’ guide. Written by our own Chartered Accountants, this useful resource covers:
- The “Top 10” things you need to know before going limited
- What business expenses you can legitimately claim
- How registering for VAT can increase what you earn
- IR35 legislation and how to avoid being caught.
I hope this information has been helpful, but if you have any extra questions then don’t hesitate to contact me on
0800 954 2101 or via email at email@example.com.
How Much Could You Earn By Going Limited? Find Out Now…
Enter your details below for a personalised income illustration.