How to Contract through your own Limited Company
Running your own Limited Company is actually very straightforward.
The first thing you'll need to do is form a Limited Company. This will take 5 minutes and your company should be set up within two hours. The cost of formation is £125 plus VAT. To form a company click Company formation. We will also help you with VAT registration and setting up a business bank account.
Invoice your client/agency (we provide you with a template). Complete a very simple Excel spreadsheet, similar to an expense claim form which should take about 15 - 20 minutes per month to complete.
Forward any correspondence you get from the Revenue or Companies House to your account manager at SJD and we will take care of it for you.
We guarantee that there is no more effective way of working than contracting through your own Limited company.
Frequently Asked Questions
1. How much will I take home?
Typically, contractors working through their own limited company take home between 75% and 80% of their contract value. For more details read our NEW pages: Take home pay Limited company or Umbrella company - The Real Story, 'How much can I earn as a contractor?' or try our online Limited Company Business Calculator.
Also visit SJD's case study section under the Information heading to read more about take home pay examples.
2. Am I caught by IR35?
The only way to be sure whether your contract falls inside or outside IR35 is to have it reviewed by a specialist. SJD are one of only 3 firms in the UK who advise the Professional Contractors Group on IR35 and so are well qualified to give you the correct advise. Just forward a copy of your contract to your Account Manager and they can advise. To read our plain English guide to IR35 click here.
3. I’m inside IR35, should I still use my own Company?
Even if your contract is inside IR35 you can still claim travelling and accommodation expenses, 5% of your turnover, get the benefit of VAT flat rate (saving around £2000 a year), and get the interest on the funds held within your own Company, so yes, from a financial point of view it could still definitely be worth it.
4. What expenses can I claim?
If you are outside IR35, you can claim back anything that is "wholly and exclusively" incurred to carry out the day to day running of your business. This includes insurance, accountancy fees, travel and accommodation expenses, motor expenses, computer hardware and software, telephone, stationery, training etc etc, click here to read SJD's full Guide to Expenses.
5. Why should I choose SJD to be my Company's accountants?
SJD Accountancy is the UK's largest specialist providers of Accountancy Services to Contractors, Freelancers and SME’s.
Our credentials:
- The most recommended accountancy firm on the Internet;
- The chosen accountancy firm to over 10,000 Ltd companies (SJD Accountancy have been providing Accountancy services for over 17 years);
- Winner of the www.contractoruk.com ‘Best IT Contractor Accountant’ award for the last three years;
- Recommended by the Sunday Times;
- Winners of the Accountancy Age Awards for Excellence, in 2007 and 2004, finalists in 2008, 2006, 2005 and 2003;
- We have a two star 'Outstanding' accreditation from the organisation behind The Sunday Times Best Companies awards.
6. How much do you charge?
The fee for our services are £95 plus VAT per month. There's no minimum length of time you need to appoint us and there are no entry or exit fees.
You may also find the following pages, guides and case studies useful:
Take home pay calculator - How much could you be taking home
Take home pay Limited company or Umbrella company - The differences
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 for you
Take home pay case studies - Examples of contractors using a ltd co. & umbrella co.
Expenses Guide - Know exactly what you can claim
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35
SJD Accountancy
SJD Accountancy are the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors and freelancers; we've been acting for contractors across the UK since 1992, have more than 10,000 clients; are the only National specialist firm of accountants with offices in all major UK cities; are the most recommended accountancy firm on the internet and have more qualified staff than any other specialist firm with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA.
At SJD Accountancy you will get an accountant from a large, respected and award winning firm, who will take time to get to know you, always take your calls and provide you with prompt and professional advice. We’ve banned voice mail and you'll never be asked to press one for this or two for that.
We provide our contractor and freelance clients with:
Free face-to-face meetings. Tax is complicated which is why we offer everyone free face to face meetings in any city of the UK.
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 backed 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 of this for a fixed monthly fee of £95 plus VAT, which is one of the lowest prices in the market.
Click here for an interactive map showing all our offices
If you wish to appoint us as your accountants immediately, the quickest and easiest way to do so is by accessing our Client Agreement Form.
If you have any queries or would like further advice please don't hesitate to contact us on 0500 152 500 / 01442 232700, email michelle.turbutt@sjdaccountancy.com.
Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!
