Limited Company, maximum benefits
Before you decide which trading options are best for you, it is important to speak to a contractors’ Accountant, as you will need confirmation that setting up a Limited Company best option considering your personal circumstances, especially IR35.
There are many different ways to create a limited company and knowing where to start can often feel overwhelming. Setting up and running your own limited company with the support of a dedicated firm of contractors’ Accountants like JSA is simple, effective and cost effective.
JSA offers an Accountancy Service to support and guide you through the whole process, from setting up your company right through to the time when you may decide to close it down. We register your Limited Company, can advise with the setting up of your Company bank account and fully support you in the day to day running of your company including offering a fully experienced customer support team who are able to answer many questions that you are bound to have with such a new working experience.
Benefits of trading through your own limited company:
- The ability to offset certain business expenses
- Tax efficient way of operating, especially if your income is not caught by IR35
- Assistance with setting up and registering your Limited Company including Bank account
- Becoming a Director gives you an increased business status
- Complete control of the company and its transactions
- Simple to administer and operate
- Distribution of dividends to shareholders
- Great for people who are looking at contracting as a career and who may want to use their company for other business activities.
- Well suited to a professional career as a contractor
How to operate a limited company
When you set up a limited company, you will become an employee of that company as well as a shareholder and director, although there are circumstances where you may choose for someone else to assume these roles.
Your personal finances will be separate from your company’s finances. Your company must account for all of its own income and expenditure. Your gross income will be paid directly into the company’s business bank account and not into your own personal bank account.
Depending on the terms of your contract/s you will receive payment for the work you have done, by one, all, or a combination of the following:
- Salary - you will be paid a basic salary after Tax and NI have been deducted
- Expenses - You can claim your allowable business expenses
- Dividends - paid to the company's shareholders
Limited companies pay corporation tax and employees pay income tax and national insurance contributions. You must also register for VAT if you earn over £61,000 per annum.
How do I set up a limited Company?
JSA’s Accountancy Service includes the set up and registration of your Limited Company. Our specialist team can set up a limited company at Companies House with a name of your choice in a matter of hours and deal with all the statutory requirements of setting up your company.
We will guide you through every step of the way from, setting up a bank account, paying yourself a salary, dividends and expenses to how to effectively manage the day to day running of your accounts.
JSA’s comprehensive Accountancy Service package includes:
- A fast and efficient set up
- Professional Indemnity Insurance
- Public and Employers Liability insurance
- Professional Expense insurance
- “JSA Online” to record your day-to-day financial transactions
- Online invoicing system
- A monthly financial statement to help you manage your money
- A quarterly management review of your company’s financial position
- Payroll, company law, accounting and tax compliance
- Client care provided by a dedicated team of experienced professionals
- Access to our extensive website – so that you have an encyclopedia of knowledge and experience available at your fingertips, 24/7
- Regular newsletters and email updates on important contracting matters
We offer a complete range of accountancy packages to suit your requirements based on how much or how little you wish to be involved. In a couple of minutes on the phone we can assist you with the ordering and registration of your limited company.
Setting up in business on your own account really as simple as that.
Read on...
More information for a First Time Contractor
For a detailed overview please download JSA's First Timers Guide to Contracting.
Introduction to contracting – the pros and cons of contracting
Exploring the pros and cons of contract work – living the dream and avoiding the pitfalls
The Contracting Basics - what is contracting and is it a viable option?
Securing a contract – contracting a lifestyle choice
The contract its terms and conditions - how does IR35 Effect me?
Trading options available to contractors - Umbrella or Limited Company option?
Umbrella Company vs. Limited Company - which is best for me?
Contractors Umbrella Company – what is an Umbrella Company - exploring the benefits?
Limited Company option - the ins and outs of setting up a company
You may also find the following pages, guides and testimonials helpful.
Our Services – how JSA can help you
A guide to IR35 – what it means and how it affects you
Case studies – find out what our current clients have to say about JSA
Request a call/email back – we can call or email you back at a time that suits you
Talk to one of our experts
Register your interest online now.
Email our advisors at newenquiries@jsagroup.co.uk.
Or call free phone 0800 25 26 40