Thinking of contracting?
One of the first and most important decisions for a contractor to make is whether to operate as a limited company or as an umbrella company.
Operating through a limited company will have the highest percentage return of take home pay. With good advice from an accountant you will be able to save on PAYE and National Insurance by operating through a limited company, assuming you aren’t caught by IR35.
If you operate through an umbrella company, then you are paid salary as an employee of that company, and as such your salary will be deducted with PAYE and NI, after some expenses are offset.
Operating through an umbrella company means there is very little paperwork involved, and no company deadlines to meet.
Being a director of a limited company involves responsibilities and legal obligations. It will involve submission of company accounts, company tax returns, self assessment returns, VAT returns, payroll RTI submissions. However, appointing a good accountant will help reduce the workload and the stress significantly.
Here, at Mark Stanley Accountants, we hold your hand all the way, for as long you need us. We advise you on how much salary you can draw, discuss IR35 with you, how much tax to set aside, and when your deadlines are. We will ensure that being a director of your limited company doesn’t have to be scary or stressful.
Contact us by e-mail at [email protected], or ring on 01207 582528 for a no obligation chat about the best route for you.