Top tips for contracting through a limited company
The first step in any Limited Company – but you only have to do it once! In practice, this is a hands-off process that is mostly handled by your accountant. Your accountant will incorporate the company and register it for PAYE, Corporation Tax and VAT. You will need to provide identification, a company name and a UK registered address. You will also need to set up a business bank account – more on that here.
Invoicing your agency or client
Once you have taken on a contract, you will need to remember to invoice your client in order to get paid. Your invoice will need to contain your company name, company details, VAT number, invoice date, client name and details of the products/services you have provided. You can create an invoice template to speed this process up. Invoicing is generally either weekly or monthly, as agreed with the client. If you use business management software like FreeAgent – provided free to all Dolan Accountancy clients – then you can handle this online with just a few clicks.
Keep track of your business expenses
You should keep a record of all allowable business expenses, including receipts and supporting evidence. It is helpful to keep all business spending on your business bank card – this makes reconciling expenses far easier. If you use bookkeeping software, make sure to log your expenses at least once a month – you will save yourself a major headache at the end of each VAT quarter and your accountant will thank you too! For more information on allowable expenses, check out our detailed contractor expenses guide.