Contracting and freelancing in the past couple of years has never been more popular. With the promise of professional independence, a higher take home pay than permanent employment and no glass ceiling, there are very few reasons not to take the leap.
Demand for skills
The ongoing dramas surrounding Brexit and other Government promises to deliver infrastructure projects and technology change, are still creating huge demand for IT and related skills across the UK.
Employers are still preferring to keep employment costs under their control by engaging flexible workers. And anti-avoidance rules are also settling down with engagers being more pragmatic and accommodating (rather than issuing blanket edicts) in order to attract and retain talent.
All good news for contractors and freelancers.
Are you ready to take the leap and set up a Limited Company?
Setting up a Limited Company as a contractor can be an exciting and lucrative career move but it’s not for everyone. On the plus side, you’d be your own boss, be able to choose your hours, make more money and gain a variety of experience. On the downside, contracting can be lonely, and any contracting accountant would advise you to keep a financial reserve in case of quiet times.
If you’re ready to take the leap, then there are always choices of which trading model you should trade under – a sole trader, umbrella or Limited Company. As a rule of thumb, if you’re a ‘Knowledge Worker’ or skilled in a particular trade or profession, then an accountant for contractors would suggest you set up a Limited Company that can provide you with the best solution from several perspectives. For individuals who are independent and outside of supervision, direction or control of the hirer, there will be advantages in your take-home pay. You’ll have increased flexibility and commercial credibility, but you’ll have to protect yourself from loss of earnings because of illness or inability to work (usually through insurances).
There are financial benefits in optimising the way your company is set up and run, so it’s advisable to take professional accounting advice from the outset. So ask for assistance from a Limited Company contractor accountancy specialist from the beginning and get off to a good start. Alternatively, download our free guide: Venturing into contracting for all the online accounting advice and support you’ll need in order to make the right decision for you.
Expert contractor accountancy advice
If you’re thinking of setting up as a Limited Company contractor, Intouch’s contractor accountants can offer so much more than just another accounting service. From limited company set-up and insurance to tax and free IR35 reviews and advice, your Personal Accountant will be there to help you start your journey with confidence.
We know that taking your first step into contracting is a big decision so our contractor accountants are happy to chat through any questions you have about setting up a limited company, even if you’re not ready to get going just yet. Get in touch and speak to one of our limited company contractor accountants today.
