Advantages of Contracting
1. Higher take-home pay. Everybody wants to take home more of their hard-earned pay, while staying on the right side of HMRC. A Limited company offers greater opportunity for intelligent tax planning than self-employment or an umbrella company.
2. Tax relief on business expenses. Any costs incurred solely in the running of your business can be claimed back as expenses, allowing you to offset the necessary costs of contracting. You can find out more in our Expenses Guide.
3. Greater opportunity for tax planning. In addition to expenses, you may benefit from the flat rate VAT scheme, and you can plan how and when to draw income from the Limited company in the most tax-efficient manner.
4. Total control of your business and name. You have complete control of your own financial affairs. Once incorporated, the name of your company is protected – even if you’re not currently contracting.
5. One company for all your business interests. Any business you undertake can be done under your Limited company banner. This presents a more professional image, and gives you more credibility in the eyes of your suppliers and customers.
6. Limited liability and protection of personal assets. In the event that a business fails, you cannot be held liable for the debts of a limited company and your personal assets are not at risk.