Contractor Limited Company Formation

To check if your required company name is available, or if you would like to form your Limited Company immediately, click here

Contracting through your own Limited Company is the most tax efficient way of working meaning that you can take home more of your hard earned money, any accountant or tax expert will tell you this. But isn’t it a lot of hassle managing your own limited company?

Well we won’t lie, using an umbrella company is the simplest option.

However, you might be surprised at just how little extra work there actually is managing your own Limited Company. Other than sending a few cheques here and there to HM Revenue and Customs (your SJD accountant will help you understand how much to pay), sending out invoices, and filling in a spreadsheet there really isn’t that much more. Contractor clients say to us it typically takes them about 15 minutes a month.

The financial rewards for owning and working through your own limited company compared with using an umbrella company could be substantial, as much as £15,000 per year more on a daily rate of £350.

How do I form my Limited Company?

Once you’ve made the decision to contract under your own Limited Company, the next step is to form your company. The whole process only takes 5 minutes on our website, following which your company will be formed within approximately 3 hours (during normal work hours). All you need is a company name and a credit card to complete the transaction.

Once you have formed a Limited Company, you will receive all the necessary Limited Company documentation, along with an application for free business banking, VAT and PAYE registration details. During the on-line formation process you will be asked for several pieces of information:

Director Details This is you. The Director controls invoicing, the company bank account and decides on how much to pay themselves, which is made up of a combination of salary and dividends.
Secretary Details Following a change in legislations, as of 6 April 2006 there is no requirement for a company secretary You will need to allocate shares in the company.
Subscriber/Shareholder Dividends are distributed to the shareholder(s) of the company, which is how you will take most of your income.

To check if your required company name is available, or to form your Limited Company online click here

We can also advise you on registered offices - you may be registered at home or a formal business address however SJD offer a service through which we deal with all your business mail leaving you free to run your business!

How much does it cost?

Forming your company costs £125 plus VAT on our website, which is one of the lowest fully inclusive prices available. You can of course find cheaper prices on the Internet but they rarely include everything you need, such as VAT and PAYE registration, each of which can cost as much as £75 plus VAT from other accountants. Plus, cheap online formations often don’t provide any telephone support, so if you do get stuck who is going to help you? 

We have even seen offers of free company formations, which on first sight seem like great offers. It's only when you read the small print that you actually find out that if you accept the free formation you must remain a client for a minimum of a year or even longer, meaning the so called free formation ends up costing you thousands.

Forming through SJD will give you peace of mind as you can call our Client Liaison Team directly who will be more than happy to assist you. You can of course form your company anywhere; you don’t need to form on our site to become a client.

Forming your company online through us covers the complete company formation service with all legal requirements so that you can start trading as a limited company. This includes:

  • Helping to organise a Company Bank Account
  • Registering the Company for VAT and PAYE
  • Advise on the optimum share structure of your Company

And, company formations can be claimed back as an expense.

If you have any questions about forming your Limited Company you can contact our Client Liaison Team on 0500 152 500 or email Michelle at michelle.turbutt@sjdaccountancy.com

You may also be interested in the following pages, guides and case studies:

About SJD Accountancy

SJD Accountancy is the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors and freelancers. We've been acting for clients across the UK since 1992 and have more than 10,000 already.

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 has 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. All of our clients receive:

• 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, 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 refund your monthly fee.
• Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.

We offer an 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 £95 plus VAT, which is one of the lowest prices in the market.

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