30 Second Guide to going Limited
If you’re a contractor working through your own limited company your take home will be anywhere between 75% - 80% of your contract value, for example:
- Daily rate £200 take home between £150 - £160
- Daily rate £300 take home between £225 - £240
- Daily rate £400 take home between £300 - £320
- Daily rate £600 take home between £450 - £480
Also, compared to working through an umbrella company, you’ll save literally thousands due to there being no National Insurance contributions on dividends (this obviously does assumes your contract is outside IR35). To give you an idea; with a typical £350 per day contract you’ll save £12,000, £200 per day and you'll save £9,000 and on £600 a day save £20,000.
When you take into account the huge financial benefits, it’s no surprise that so many contractors are choosing to go limited.
Find below our 30 second guide.
1. Is your contract outside IR35 i.e. compliant or inside IR35?
Call us on 0500 152 500 or e-mail rachel@sjdaccountancy.com who will help you to understand if you are outside or inside. Even if your contract is inside IR35 it may still be worth going limited, click here to read our simple plain English guide.
2. Form a Limited Company
This will take approximately five minutes and your company will usually be formed in under than four hours.
The cost is £125 plus VAT which is one of the lowest in the market; there are cheaper options but you very rarely get everything you need and often have to purchase extras later on (in the last year SJD has formed over 5,000 limited companies, so as you can see we are a popular choice).
Included in our fee is:
- Online name company checking
- Advice on share structures
- Registration for VAT and PAYE
- Help with FREE business banking
- Freephone advice line to help guide you through the whole process
3. Appoint an Accountant
This will just take one minute. Once you have appointed your accountant, they will help you to understand the most tax efficient way to take money from your company and will be happy to answer any of the questions we are sure you’ll have.
SJD offers a complete package including: completion of accounts, payroll bureau, dividends, corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns for a fixed monthly fee of £110 plus VAT, which is one of the lowest prices in the market.
We are the UK’s largest specialist tax accountants to over 11,000 contractors and freelancers.
4. Closing a company
What happens if I change my mind and decide I don’t want a Limited Company any more?
All you have to do to be removed from the register of companies at Companies House is complete a form. Plus you’ll more than likely have end of year accounts to submit – your accountant will help you with all of this.
If you have any questions about contracting or would like any further advice please call our New Client Services helpdesk on 0500 152 500 / 01442 275789 or email jaime.thorpe@sjdaccountancy.com
Other useful pages, guides and case studies include:
Take home pay through a limited or umbrella company – The differences
Take home pay calculator - How much could you be taking home
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best
Guide to Contracting - All the best guides to contracting in one place
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35
About SJD Accountancy
SJD Accountancy are the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 11,000 clients.
We are the only National specialist firm of accountants with offices in all major UK cities so you’ll never be far from your accountant. SJD also have more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well.
SJD have also won every relevant industry award possible, including:
- Best Contractor Accountants - Contractor UK 2011 - 2007
- Accountant of the Year - The British Accountancy Awards 2011
- Best Professional Team of the Year - UK Customer Experience Award 2011
- Customer Commitment Award - Institute of Customer Service 2011
- National Chamber of Commerce Award 2010
- Medium firm of the Year - Finalist Accountancy Age 2010
- Excellence in Customer Service - Finalists National Customer Service Awards 2009
- Sunday Times Best Small Companies - Award 2009 - 2007
- Small firm of the Year - Accountancy Age 2007 & 2004 and finalists in 2010 and all years since 2003
- Deemed PCG accredited accountants and fully MSC compliant
We offer all clients:
Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, e-mail or meet your own dedicated accountant face to face.
Money back service guarantee. All your telephone calls and e-mails will be answered the same day or we will refund your monthly fee's.
Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
All inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns.
All this for a fixed monthly fee of £110 plus VAT, which is one of the lowest prices in the market. And most importantly, in a recent survey 98% of our clients rated SJD as 'better than other accountants' - we are working hard to convince the other 2%!
If you have any question about contracting or would like any further advice please either contact your SJD Accountant or call our new client services helpdesk on 0500 152500 / 01442 275789 or email: michelle.turbutt@sjdaccountancy.com.
Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!
