Becoming a director of a limited company will allow you to structure payments to yourself in a tax efficient manner. This is known as a Salary/Dividend Strategy. See our guidance on this below.
Becoming a contractor operating via a Ltd Company has many perks and benefits over operating PAYE, and a primary example of this is being able to structure your income via salary and dividends. A complete limited company setup is included within each of our accounting packages.
It is common for contractors to pay themselves a small salary and the lion’s share of their income via dividends, but this practise should be closely monitored by an accountant to ensure that you are operating cost effectively and tax efficiently.
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