The Options:
There are two main ways that your business could operate. These are:
- Companies we manage for you
- Your own limited company
Companies we manage for you:
Under this arrangement you work through either our umbrella company, or one of our managed companies. You are not a director. You are not therefore responsible for running the company. We do the paperwork leaving you free to do what you do best, serving your customer. You are able to claim generous expenses which are tax and National Insurance free. You therefore significantly increase your take home pay.
If you wish to take advantage of the simplicity which using a company managed by us can bring, we will have your contract examined by legal experts to see whether it is liable to the IR35 Legislation. If it is, you will be able to use our Umbrella Company Service or our Managed Company Service. If you are not liable to IR35, then our Managed Company option is available to you.
Greater tax savings are available if you operate though you own limited company and are not liable to IR35.
Limited Company:
This operating method is the most tax efficient available under current legislation as not only can you claim the expenses which our other clients can claim, but you minimise your liability to PAYE and national insurance. Although the company will have to pay corporation tax instead, this is at lower rates. It is for these reasons that limited companies are so popular.
We have a range of options for contractors operating this way including our All Inclusive Service for those wanting minimal input into the administration of the company, yet all of the extra tax savings their own limited company can bring. Clients who have been contracting for some time may wish to extend their companies activities beyond contracting work. We have considerable experience in helping clients achieve their goals and ambitions tax effectively.
