Many IT contractors work via their own limited companies. There are a number of benefits to incorporating; we look at how the formations process works, and what it means to be a limited company director.
Business Structures - Limited vs. Umbrella
Virtually all IT contractors work via limited or umbrella companies. In this section, we explore how each type of structure works.
- Umbrella - the 'hassle-free' route, with very little paperwork involved. After choosing a provider, you become an employee of the umbrella scheme.
- Limited - the more tax-efficient route, but with more paperwork and legal obligations. In reality, a specialist accountant can take care of the admin for you.
- Find out more about the advantages and disadvantages of each business structure and view our comparison table for the pros and cons of each.
If you decide to start trading via your own limited company, you may at first be put off by the perceived ‘hassle’ associated with being running the company, and becoming a director. However, if you hire a reputable accountant and undertake some basic administrative tasks, you should find that you can manage your company’s affairs […]
If you have decided to trade via your own limited company, you have to submit an application to Companies House, the registrar of companies. Here, we’ve listed 10 bits of information you need to collect in advance to ensure your formation can be processed correctly first time.
If you’ve chosen to set up as a limited company contractor, how much admin work will you have to undertake? In truth, there’s not as much ‘hassle’ as you might imagine, especially if you hire a good accountant.
If you’re running your own limited company, there are a number of records the directors are obliged to keep. Here we explain what these registers are used for, and what types of information they contain.
There are several ways to set up your own limited company; via an accountant (a popular way), via a company formations agent, or direct with Companies House. Here we look at the typical costs associated with each option.
Why recruitment agencies and end-clients are unlikely to hire contractors who do not work via either a limited or umbrella company structure.
Almost all contractors who provide professional services to clients trade via their own limited companies, or join PAYE umbrella schemes. Here we’ve compiled a table to help compare the pros and cons of each structure.
Several significant tax changes are set to take effect from April 2016. Here, a leading accountant explains what the likely impact will be, and why the limited company model remains a smart choice for contractors.
One of the main attractions of contracting via your own company is that the liability of its shareholders is limited. So, to what extent is the liability of company directors limited?