All you need to do is inform your umbrella company that you no longer require their services, and then go on to form your limited company.
How much more can I earn through a limited company?
If you’re working through an umbrella company you will take home less of your contract value when compared with your take home amount through your own limited company.
The Government’s Flat Rate VAT scheme enables you to keep a percentage of the VAT you charge your agency/client. A £50,000 contract over one year will be worth £1,700, while a contract for £100k will gain you £3,400. Additionally, because you are saving to pay for your tax, you can also expect to make up to several hundred pounds a year in interest.
Are accountancy fees higher than umbrella company fees?
Accountancy fees are similar (if not lower) than those charged through umbrella companies. SJDs accountancy fees start from just £120 plus VAT per month; this is a fixed fee and a fully inclusive service. Don’t forget that our charges are transparent and backed by our customer promise. We are the appointed accountancy firm to over 15,000 contractors and have won numerous awards. You’re in good hands.
Isn’t it complicated and time-consuming running your own company?
The process below explains everything you need to know. You can move to limited at any point, even mid-contract. Becoming a client and setting up your own company takes only a few minutes via our online facility, from then on we’ll work with you to manage your VAT and tax affairs.
Our fees are fixed and we’ll provide a proactive, prompt and efficient service; all we ask you to do is a small amount of monthly admin which typically takes no more than 15 minutes and we’ll do the rest, leaving you to enjoy the rewards from your contract work.
It’s no wonder that more contractors are running through their own limited company than ever before.
I’m inside IR35; surely it can’t be worth it for me?
If your contract and working practices look like you are inside IR35, you can still benefit from the Flat Rate VAT Scheme, and receive interest on the funds held within your own company. Any other work deemed outside IR35 could also be put through your existing limited company. Download our free Guide to Expenses.
The only way to be sure whether your contract falls inside or outside IR35 is to have it reviewed by a specialist.
How do I switch from umbrella to limited?
The first thing you’ll need to do is form a company using our limited company formation service.
Your company will be set up within two hours, and all documentation will be sent out by first class post within 24 hours. There is a one-off charge of just £125 plus VAT, for setting up your limited company. This process includes opening a Company Bank Account, VAT/PAYE tax registration and advice on share structure (some companies charge extra for these).
Contact SJD Accountancy
We’ve been providing expert accountancy advice and helping contractors to focus on doing what they do best since 1992.
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Running your own limited company isn’t difficult – especially with the assistance of a good accountant. Your accountant at SJD Accountancy will:
- Help you understand the best way to maximise your take home pay.
- Help you with all liaison and correspondence with HM Revenue and Customs as well as with Companies House.
- Help you understand what you can and cannot claim.
- IR35 advice.
- Complete all accounts, dividends, corporation tax calculations and your personal tax return.
- Provide ongoing year-round proactive tax advice.
- Unlimited access to your own dedicated accountant to answer any questions you may have.
The fee for this service starts from £120 plus VAT per month. Check our packages for more detail. There’s no minimum length of time you need to appoint us and there are no entry or exit fees.
If you wish to appoint us as your accountants immediately, the quickest and easiest way to do so is by accessing our Client Agreement Form.
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