Working through your own limited company is often seen as the best way to operate. Being a limited company director allows you to operate more tax-efficiently, be in charge of business decisions, and allows you to choose how you work. However, this does mean that you have to take on additional responsibilities.
Company director responsibilities include:
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If you’re considering setting up your own limited company, there are responsibilities to be aware of before getting started. Contracting through your own limited company means you have to appoint a company director to run and manage your business, with most contractors appointing themselves as the company director.
Once you have set up your limited company, as a director you are responsible for:
- Filing your accounts and tax returns
Having a specialist accountant on hand will minimise the worry around submitting tax returns, such as the possibility of facing a fine for failing to submit your returns in time for HMRC deadlines. Using the services of an accountant means you can be assured that the right forms will be completed, at the right time and in the right way.
- Paying Corporation Tax
This constitutes a substantial portion of your trading costs as a limited company. A specialist accountant will help you to meet the rigorous demands of compliance, including corporation tax self-assessment. Efficient corporate tax planning can result in potentially significant improvements in your bottom line.
- Keeping company records
Compliance requires accurate record keeping for any limited company. Your accountant will advise you on what records to keep, and for what period of time you should keep them.
- Staying compliant, a legal requirement for contractors is to have Employers’ Liability Insurance
Having more than one employee means you as a limited company director are obligated to take out Employers Liability Insurance, which protects you against the cost of compensation in the event of injury or illness. A good accountant will advise what other insurances may suit your unique needs.
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