How to Contract through your own Limited Company

Running your own Limited Company is actually very straightforward.

step 1The 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.

step 2Invoice 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.
 

step 3Forward any correspondence you get from HM Revenue and Customs or Companies House to your accountant and they 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.

You might also find our new How to become a contractor guide - illustrated infographic useful.

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 advice. Just forward a copy of your contract to your accountant and they can advise. Click the following link to read our plain English Guide to IR35.

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 . For more information 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 provider of Accountancy Services to Contractors, Freelancers and SME’s.

Our credentials:

  • Experienced, specialist providers to 15,000 contractors, freelancers and small to medium sized businesses.
  • 25 years of outstanding customer service.
  • Winners of the Accountancy Age Awards for Excellence in 2007 and 2004, finalists in all years from 2003 to 2010.
  • The British Accountancy Awards ‘Accountant of the Year’ winners in 2011, finalists in 2013 and highly commended in 2012.
  • Ten time winners of the 'Best Contractor Accountant' award voted for by visitors to Contractor UK 2007 to 2016.
  • Institute of Customer Service ‘Customer Commitment’ Award 2011.
  • ‘Best Professional Team of the Year’ in the UK Customer Experience Awards 2011.
  • More qualified staff than any other specialist firm with qualifications covering: ATT, AAT, CTA, ACCA, CA, ACA and FCCA.
  • Offices across the UK.
  • Deemed IPSE Accredited Accountants and fully MSC compliant.
  • Recognised authority on IR35.

6. How much do you charge?

The fee for our services start from £120 plus VAT per month, there is no minimum length of time you need to appoint us and there are no entry or exit fees. Check our packages for more detail.

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

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: nikki.hanlon@sjdaccountancy.com.

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 starting from £120 plus VAT per month. Check our packages for more detail.

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. Our new client services helpdesk is open Monday to Friday (8am to 6pm).

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.