The benefits of a limited company contractor

Friday, 26 August 2011 02:02

The benefits of a limited company contractor

The benefits of a limited company contractor

If you are in the process of setting up a limited company then the benefits of operating in this way are numerous.

It is likely that you have chosen to work in this way because your IR35 status permits it and because it is by far the most tax efficient way of working as it allows you to maximise your earnings.

In many cases, agencies also prefer to deal with contractors working through a limited company rather than an individual who is a sole trader.

This is because it provides them with the assurance that everything is above board in terms of paying tax and meeting legal obligations.

When you first get established as a limited company, you may be keen to put yourself out there at the earliest possible opportunity and start watching the contracts pile up. Indeed, the chance to spend all day doing the job you love is probably what attracted you to this type of career in the first place.

However, you will be surprised at how quickly your working life can become weighed down by paperwork, like dealing with invoices, tax returns and tax payments. This is where the benefits of using an accountancy services provider comes in.

There are businesses across the UK that focus specifically on assisting you at every step of the way of working as a limited company contractor. By taking advantage of these companies, you will have the assurance that your company books are being correctly and professionally handled, leaving you with more time to spend on the work you excel at.

The accountancy service provider will carry out services such as raising invoices on your company’s behalf, producing tax returns and advising you when to make a tax payment and how much to pay. The accountancy service provider may also provide you with management accounts every time your agency make payment into your business bank account telling you how much money to retain for future tax payments and how much is available to withdraw.

This means that you are able to simply get on with securing clients, promoting yourself to customers and doing your job to the best of your ability.

With so many advantages to be enjoyed when you become a contractor, make sure you banish all the potential disadvantages by making use of these services. By doing this, you have the reassurance that your business has been established and is being run in a way that complies with all the necessary legal regulations, including adherence to MSC and abiding by IR35.

You are sure to agree that life as a contractor is a lot easier when you have a business like this on your side, so why not start conducting your own research today?



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