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 and dividends 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 practice should be closely monitored by an accountant to ensure that you are operating cost-effectively and tax efficiently.
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