Benefits Of Going Limited
PAYE Vs Limited
There are over a million professional contractors operating in the UK, and trading via a Personal Service Company can prove a lucrative and liberating way of working. Let’s take a look at the differences between working PAYE vs Limited.
What’s The Difference?
As a permanent employee, your employer takes care of pretty much everything and probably more than you thought. Having the perks of a company pension is something that doesn’t come automatically to a contractor, as well as employment benefits such as sick pay, death in service and HR advantages.
However, you don’t have the freedom involved with self-employment, nor the financial benefits of operating via a limited company. It may mean more uncertainty to go limited, but with QAccounting at your side, it is arguably just as easy as working in a permanent position.
Our guide to becoming a limited company includes the following tips: The Advantages of going limited How to set up a limited company with Qdos Business insurance you may require How IR35 effects a limited company
Advantages Of A Limited Company
When you incorporate your company, you become a Director. This means that you have more responsibilities but also complete control over how you run your business, and how you think the work should be done.
With your own company, you are your own boss, which means you can take time off when you want to (generally in between contracts), and draw income as dividends as and when you need it (such as whilst taking holiday, so you effectively get holiday pay).
Limited company contractors have the freedom to take income from their company how they choose, they can also make use of tax efficiencies which makes trading as a limited company the most cost effective option. Use the calculator above to determine how much more you could be taking home by going limited.
Your company has limited liability, so you will not be personally liable should things go wrong, and your company name is also protected, so nobody else can take it.
With QAccounting, running a limited company is easy. We’ll set up your company for you, and then all you need to do is submit your timesheets and expenses to us each month. We will invoice your client/agency and handle any HMRC and Companies House correspondence. We will send you a snapshot each month with a summary of your finances, and how much you can safely withdraw as dividends, plus your dedicated client manager will assist you with IR35, contractor insurance, pensions, wealth management, and more.