The benefits of contracting are many and varied. You essentially become your own boss and in control of your own destiny. If you don’t like your current role, you just find a new contract. If you want more money or more responsibility or to move your career on a step, you just find a new role. You just have to have confidence in your ability to keep taking that next step and keep than next role. And you tend to get paid more.
The benefits of working through a limited company are several. One of them is you get continuity of employment. You might work for ten clients in two years, but you have only had one employer and no periods of unemployment. This is good news when you are applying for things like a mortgages or visas. Another is limited liability. If the worst happens and litigation is taken our against you for some reason in many cases only the company is liable, and your personal assets are protected.
But perhaps more importantly you save tax. This is done in two ways. Firstly you are able to claim more deductions. For example when you work through a limited company you have a home office. Not only can you then claim the costs of having the office, but you can also then claim the cost of travel from the office to other places of business. Also by having a limited company you are able to pay yourself through a combination of wages and dividends, rather than just wages. This allows you to keep your wages relatively low, which saves National Insurance, as you don’t pay NI on dividends.
For everything you earn between the NI primary threshold (currently £7,225) and the upper earnings limit (currently £42,485) you have to pay Employers NI of 13.8% and Employees NI of 12%. That’s 25.8% tax you save by reducing your wage income between those two bands.
The Benefits of Working through an LCCS Limited Company. Most importantly, why are we better than our competitors? There are a number of reasons why we feel we provide the best solution for contractors through a limited company on the market today.
Live Tax Return and Live Company Accounts We are the cheapest, we do have the best system and we do give you the most for free. However we feel the main reason you should use us is the Live Tax Return and Live Accounts. These two tools are truly revolutionary for contractors working through a limited company.
As a contractor working though a limited company, after you receive your gross payment from your client into your company bank account what you want to know is how much of this must I retain in the company for future tax liabilities, and how much can I pay myself. And out of what I pay myself how much will I need for my personal tax liabilities, and how much can I spend. Only the Live Tax Return gives you this information, each week, at a glance.
We give you more for free:
- Weekly tax report and Weekly accounts, so you always know exactly what is going on. Others only do this quarterly.
- Register your limited company for free. No one else does that for free.
- Your Individual tax return. No one else does that for free.*
- Register your company for VAT some others charge for that.
- Register you for flat rate VAT some competitors charge for that.
- Complete your quarterly flat rate VAT returns most competitors charge more for that.
- We will even lodge your annual return with Companies House for free. Everyone else charges you the £15 filing fee.
We are the cheapest. By concentrating on what we do best we are able to keep our costs down and our economies of scale high. We don’t do anything else, we just set up and run limited companies for contractors. We know everything you need to know about it and we do it more efficiently and effectively than anyone else. If you want to know about visas, or transferring money abroad or runninga florist talk to someone else. If you want accounting and tax advice relating to running your consulting business through a limited company talk to us.
No one comes close to us on service delivery, and yet the our competitors charge around £95 a month plus VAT.When you add VAT that is a massive £518.40 more per year. Not a good way to save money.
And no other competitor gives you the flexibility of paying weekly, monthly or quarterly.
*If your Individual tax return is very complicated, for example involving rental properties and capital gains then we will need to charge a supplement
We reduce the hassle Everything you need, we email to you. Once you are all set up everything we need can be submitted to us via simple forms on this website. It is that simple. There is no uploading files or faxing bank statements or complicated and confusing client areas. You don’t need to worry about anything. Whenever you need to do something we’ll tell you exactly what, how and when.