A personal limited company is a company owned by you. It is a separate legal entity giving you legal protection against any personal liability while contracting. Unlike an umbrella company, you fully own the company.
A personal limited company is most suited to long term contractors looking to establish a company in their own name. It can also benefit professionals with multiple incomes from related business interests outside of their normal daily rate contracting role.
A personal limited company is responsible for paying its own taxes and ensuring it fulfils all of its duties.
How does it work?
We will set you up with your own personal limited company. You will be the sole director and shareholder of the company. Our incorporation service includes the registration of all relevant taxes such as Corporation Tax, PAYE and VAT.
You will need to open a separate business bank account for your company. We can help put you in touch with banks that offer free banking periods.
You will be responsible for invoicing your agency / client on a monthly or weekly basis as set out in your contract. You will submit this to us each month and we will tell you how much is available for you to take from the business and what needs to be retained to pay your tax liability.
We will prepare your company’s PAYE submissions, VAT returns and company accounts which will be sent to you for approval.
Advantages of a Limited Company
- Paid a higher rate than an Employee
- Greater flexibility than an Umbrella Company
- Can utilise expenses to offset tax
- Great benefit to Company Pension
- Self Employed – you are your own boss
- Free to make your own business decisions
Disadvantages (against Limited Company option)
- No PAYE tax credit
- More responsibilities than an employee
- State welfare can be less accessible
- Must have own business insurances