Structuring your business

You may also find our guide to Accounting for Freelancers helpful.

It’s vital on day one that you decide which business model you want to adopt. There are two options, each with their own pros and cons. 

  1. Provide your own particular service for a set hourly rate
  2. Function more as a company would, managing an entire project on behalf of a client, buying in additional expertise/materials if required to deliver what they need - and then marking these services up and selling them on in order to generate additional revenue.

The main benefit of option two is a financial one, whereas the main benefits of option one are a simpler business model, no cashflow issues and less liability if things go wrong. If you do choose option two then a limited company is almost certainly going to be your best bet, but you should still take advice from an accountant to be sure. Click the following link to find out more about the differences between operating as a Limited company or as a sole trader.

The other factor to consider is whether you would be happy to work on your client’s premises as an employee would for a fixed period of time, or a set number of days per month - or whether you prefer to work from home. This latter option gives far more flexibility to work with multiple clients simultaneously and is generally what is known as ‘freelance’, whereas working on client site would be more of a ‘contract’ arrangement.

If you do end up working on a contract basis, then SJD can still provide all of the support you need.  For example, whether or not the work you are carrying out falls within IR35 legislation and what the implications of this would be.

If you have any questions about freelancing or would like any further advice please either contact our New Client Services helpdesk on Freephone 0500 152500 / 01442 275789 or e-mail sophie.lewis@sjdaccountancy.com.

Click on the links below to read our more detailed guides on freelancing.

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 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's Largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant* face to face.
  • Money back service guarantee. All your telephone calls and emails will be answered the same day or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee of £120 plus VAT per month.

If you have any questions about contracting or would like any further advice please call our new client services helpdesk on 01442 275789 or email: janice@sjdaccountancy.com.

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own Limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.