Working as an Engineering Contractor through your own Limited Company
It's often said that contracting through your own limited company is a daunting task, but nothing could be further from the truth. In fact, administering your own limited company, with the support a dedicated firm of accountants like SJD Accountancy, is simple, efficient and inexpensive.
It is also the most tax efficient way of working, meaning you will take home more money - as much as £15,000 more on a £350 daily rate when compared with using an umbrella company. Other benefits include:
- Ability to claim a wide range of expenses - accountancy fees, equipment, software...
- Access to the Flat Rate VAT scheme.
- You keep complete control of your financial affairs, which means that you don’t have to risk your money with any third party administrators.
Working as an engineering contractor through your own limited company does require a little more work than using an umbrella company as there is a certain amount of paperwork involved, but only about 10 to 15 minutes per month. Here is a quick overview of what’s involved:
- Firstly, you'll need to check name availability and form a company, but this takes just five minutes through our online Company Formation facility.
- You’ll then need to open a business bank account, and SJD can also help with this.
- Once you’re up and running you will need to send in a spreadsheet each month, just as you would if you were using an umbrella company
- From time to time you will need to send cheques off to Her Majesty’s Revenue and Customs. When that time comes, we will help you to understand exactly how much you need to send.
Still not sure if becoming an engineering contractor is right for you then read our other informative pages relevant to engineers:
Why Become an Engineering Contractor
Becoming an Engineering Contractor?
Getting Paid - The Options
Finding an Engineering Contract
If you have any questions about contracting or would like any further advice please either contact our New Client Services helpdesk on 0500 152500 / 01442 275789 or e-mail michelle.turbutt@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 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.
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 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 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%!
Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!
You may also find the following pages, guides and case studies useful:
Take home pay calculator - How much could you be taking home
Contractor FAQ - All your frequently asked questions and their answers
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 limited and umbrella companies
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
