Working as a Limited Company Contractor in Wind and Solar

Why is Renewable Energy Contracting Growing?

The UK’s transition to cleaner energy is increasing demand for skilled workers across wind, solar and other renewable energy projects.

In fact, it’s estimated that the clean energy sector will create an additional 400,000 jobs by 2030.

Another report by RenewableUK shows a 24% increase in offshore jobs compared with the previous two years, with the sector predicted to hire between 75,000 and 100,000 offshore workers over the next four years.

Renewable energy projects often require highly specialised knowledge at different points of development. This means that many organisations are more likely to choose a project-based approach, which is ideal for contractors.

This flexibility benefits both employers and contractors alike.

Common Contract Roles in Wind and Solar

Offshore Wind

• Project engineers
• Site managers
• HSE consultants
• Offshore wind consultants

Solar Energy

• Electrical engineers
• Solar project managers
• sustainability consultants
• Grid connection engineers

Energy Transition Support

Other projects that often require wind and solar energy consultants include:

• Hydrogen
• Carbon capture and storage (CCS)
• Battery energy storage systems (BESS)
• Grid infrastructure

Many of these types of projects need specialist expertise on a temporary or project-by-project basis, making contractors a vital part of the engineering workforce.

Take a look at our Contracting Careers in Renewable Energy page for more information on this.

Benefits of Contracting Through a Limited Company

While there are a few different contracting options, the limited company route has more benefits compared to working as a sole trader or through an umbrella company.

However, this isn’t always the best route for everyone.

For example, if you expect to earn less than £50,000 per year (or £200 per day), or you still want the security of having some employment rights, then the umbrella company would be a better option for you.

Take a look at our Choosing a Company Structure page for more detailed information on the different types of self-employment to help you choose.

While running your own limited company does come with additional responsibilities and admin, there are a lot more pros than cons, for example:

• It’s more tax efficient. It’s very common for a limited company contractor to combine a lower salary with dividends to maximise tax home pay.
• You’re able to claim on a wide range of expenses.
• You have limited liability. By setting up a limited company, you create a separate legal entity from yourself so that any responsibility and risk under a contract belongs solely to the limited company, protecting your personal assets.
• A limited company is often seen as having greater credibility, which can make it easier to secure contracts.

Why Hiring a Specialist Accountant Matters

As a limited company contractor, or any self-employed professional, it’s so important to hire an accountant who completely understands how contractor tax works.

This is because a contractor accountant will have in-depth knowledge and experience about things like legislation affecting the self-employed, filing requirements and how to structure a contractor’s pay to make it as tax-efficient as possible.

Here’s what else to look out for when choosing a good accountant:

• Qualifications. While an accountant is not required by law to have official qualifications, it might give you more peace of mind knowing that they do.
• A fixed monthly amount with no hidden fees. Not every accountant works on a fixed monthly fee, so it’s worth finding out if yours does – otherwise, you could find yourself with a surprise bill at the end of the year. Check that their package includes everything you need, such as tax returns, VAT returns, payroll, etc.
• Your own dedicated accountant. Most people prefer to have just one point of contact; it means you’ll receive personalised advice instead of being passed around a team of people.
• A good reputation. Whether it’s word of mouth or finding reviews online, it’s really important to do your research to find a reputable accountancy company.

If you’re looking to set up your own limited company in wind or solar, then take a look at our Become a Client page, which also includes a breakdown of our fixed fee package.

If you have any further questions, our team of experts are available to answer any queries, so give us a call on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com. Alternatively, contact us via live chat.