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 a Project Management 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 and can be done here by visiting our company name checker.
- 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 cheque’s 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.
The following links will all provide you with further information on becoming a Project Management contractor
- Why Become a Project Management Contractor?
- Becoming a Project Management Contractor
- Getting Paid – the Options
- Finding a Contract
- Limited company Guide for Management Consultants
If you have any questions about contracting or would like any further advice please contact our New business team on 01442 275789 or email firstname.lastname@example.org.