Contracting Through Your Own Limited Company

When you go self-employed, there are a few different ways in which you can operate. One of the most common business structures for contractors is to operate through their own limited company.

If you’re unsure about exactly what working through your own company entails, what your responsibilities as a director will be and how to make your business a success, we created a comprehensive guide to provide you with all of the information necessary.

What’s in the guide?

Inside is all you need to help you start your limited company and keep your business running smoothly, including:

• Understanding legislation – what is IR35 and what could it mean for your contract?
• Maximising your business expenses – find out what business costs you can expense through your company.
• Making your business a success – a look at how to manage your time, market yourself and forecast for the future.

What do I need to know about contracting through my own company?

There are a few key considerations you will need to be aware of when you work for yourself, including:

• How to form a limited company - before you can begin operating, you will need to form your company. We have laid out the process and what you need to consider.
• Setting up a business bank account - your company is a separate entity and its finances will need to be kept separate to your personal account. Find out what to look for in a business account and what transactions this will be used for.
• Your financial obligations - as a limited company director, there are certain financial responsibilities which you must fulfil, including VAT, taxes and filing your accounts.
• Paying yourself - taking funds out of your company isn’t as easy as just withdrawing a salary. Learn about the difference between a salary and dividends and how to maximise your take-home pay.