New to contracting?

You may ask what exactly is contracting all about, and why is it worth considering? Broadly speaking you are classified as a contractor if you are working under a fixed term contract for a client or through an agency on a specific project or for a determined period of time.


This differs from normal employment as you are providing your skills and time for an agreed price per hour or per day for a temporary period. Your Ltd company is paid by your client or agency for the work you perform and you are then paid by your company. Contracts are more short term than permanent employment although there are significant benefits (outlined below), primarily it means that you will be keeping more of the money you earn.


Advantages

  • Take home pay is higher – Quite simply you are able to keep a higher percentage of the income you generate
  • Control - You can benefit from higher tax savings as you have the opportunity to pay yourself in a way that suits you
  • Legal protection - working through a company reduces the risk of personal financial loss.
  • Expenses - The ability to claim a greater range of business related expenses including travel, equipment and accountancy fees.
  • Flexibility - Many clients prefer working with Ltd companies and you retain the option to work on more than one contract at once, time permitting!
  • Premium software - This gives you greater flexibility over updating your company records. You even have the ability to raise invoices and update expenses just using your phone meaning you don’t have to be sat at a desk to manage your company.
  • Working through a Ltd company is the most efficient way of working for contractors, usually this includes when caught by IR35.
  • Working with us we can help you manage all of your company affairs and provide you with all the guidance you will need.

Disadvantages

  • Becoming a company director does mean you will have responsibility for working in a compliant way. The good news is we can help you to do this every step of the way
  • You will be obliged to submit annual accounts and self-assessment tax returns to HMRC and Companies House, however once more we are on hand to get this done for you.

If you'd like to find out more, drop us a line on 01992 668599 or email us,
info@shieldaccountancy.co.uk and you'll soon be enjoying the support of Shield Accountancy.