What are the advantages of being a locum doctor through your own limited company?
It’s the most tax efficient way of being paid for your services. To put things into perspective, by operating though your own limited company, you can expect to retain a large proportion of your daily rate (depending on your personal tax situation).
Where do the tax savings come from?
1. National insurance savingsBy setting up a limited company, you become a shareholder in the company and are legally entitled to pay yourself a distribution of the profit from the company. This payment is known as a dividend, which does not attract national insurance, meaning you can retain more of your contracting income.
2. Wider range of expenses claimableOperating through your own limited company gives you the ability to claim back a wider range of expenses (e.g. accountancy fees, training, equipment & software costs)
Please note that these tax efficiencies are subject to your contract falling outside of IR35 legislation. Most contracts we see do fall outside of IR35, please see the section on IR35 legislation for more information.
Why choose Freestyle Accounting?
Whilst the registering of your own limited company is now incredibly simple and only takes five minutes, the on-going administration and fulfilment of your responsibilities as a director is a little more complex and time-consuming. For this reason, most locum doctors choose to appoint a good accountant to help with this. If you choose Freestyle…
We Take Care of Everything for You
If you appoint us then the administration side of your business will require no more than 15-20 minutes of your time per month.
Our goal is to provide you with “pain-free” accounting by way of our Everything done for you service. With our service you’ll be tax efficient without being bogged down with all the admin and paperwork involved in running a limited company; we take care of that! You simply spend 5 minutes per week updating your online portal and we take care of the rest.
You’re in Safe Hands – we’re regulated experts
As a firm of Chartered Accountants and Tax Advisors, we are regulated by the ACCA (Association of Chartered Certified Accountants) so you can rest assured that you’re in safe hands and everything is compliant with the law. We are also accredited accountants recognised by IPSE (the Association of Independent Professionals & the Self Employed), so we’re experts in dealing with Contractors, freelancers and the self-employed.
Everything is Included – there’s NO add-on fees or surprises
That’s right, everything you need is included in our fixed monthly fee, including unlimited IR35 contract reviews, your annual personal tax return and unlimited tax advice. To see a complete list of what’s included in our monthly fee please see ‘what’s included?’