As an independent contractor, you will be providing your services as well as professional advice to clients. Prior to starting your contracting role, you will need to organise professional indemnity insurance, PII, in order to protect yourself from any claims of negligence, loss of data or documents, unintentional breaches of intellectual property or claims of dishonesty.
Many clients will insist that you are covered by appropriate insurance before signing a contract with your company. As the risks faced by individual contractors will depend on their area of expertise, specialist insurers will provide professional indemnity policies that are tailored to your areas of expertise. However, in order that your accountant can prepare annual accounts and quarterly VAT returns you will need to keep a record of all invoices and expenses for the business.
Some accountants will provide a spreadsheet template for you to manually keep a record of all invoices and expenses, but specialist providers will provide an online system to simplify this for you.
See a demo of how an online bookkeeping portal works here. There are lots of options —specialist contractor accountants, small local accountants and lots of online accountancy providers. Before making a decision you should ask yourself and them the following questions:. Menu Home New to Contracting?
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Why set up your own limited company? Tax efficiency National insurance savings By setting up a limited company for contracting, you become a shareholder in the company and are legally entitled to pay yourself a distribution of the profit from the company. VAT Flat Rate Scheme Changes — 1st April From 1st April , the government introduced a new definition of a 'limited cost trader" see definition below to the flat-rate vat scheme.
What should you consider before setting up a limited company for contracting? So, how do I set up a Contractor Limited Company and start contracting through it? There are different ways to register: Online, using the Companies House Web Incorporation Service By post, of which you will need an IN01 Application form With a company formation agent, who you can pay to complete the process for you. Companies House provides a list of these along with the services they provide and their contact details on its website Alternatively, many accountants will provide services in company formation too.
Memorandum and articles of association As part of the registration process with Companies House, you will also need to complete a Memorandum of Association MOA and Articles of Association. Getting advice and support Now you should be all set to start operating as a limited company. Thursday 25th Jul Written by James Foster. James' career saw him starting as an accounts assistant. Read full bio. Ireland 1 UK Email: info oconnorandassociates.
October 9, by admin. Services to contractors and agencies Contractors and supply agencies often find that taxation and social insurance in the country of activity is a daunting task.
Do you require a company set-up? How do you register and invoice for VAT purposes? Log in. How to Contract Through Your Own Limited Company For many, the prospect of self-employment is just a dream as they believe it can be complicated. How to contract through your own limited company If you're new to self-employment and you're thinking about working through your own limited company structure, there are a few things you will need to do: Step 1: The first thing you'll need to do is form a limited company.
Thinking about setting up a limited company? Will my contract fall inside IR35? If I'm inside IR35, should I still contract through my own limited company? What expenses can I claim as a limited company director? Why SJD? Our credentials: Experienced, specialist providers to 15, contractors, freelancers and small to medium-sized businesses. Outstanding customer service since Offices across the UK. A recognised authority on IR How much do you charge? If you need any further help or advice try, these most popular links.
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