VIEW PACKAGES 01925 644 424 Services Contractor Resources About Clients Search How to Contract Through Your Own Limited Company We've outlined all you need to know when you first go self-employed. SJD Accountancy > Resources > Becoming a Contractor > 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. But working through your own limited company is actually very simple. From setting up your own company, finding a contract and managing your finances, there’s a wealth of support available to make the lives of contractors as easy as possible. 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. This will take 5 minutes and your company should be set up within two hours. The cost of formation is £125 plus VAT. We will also help you with VAT registration and setting up a business bank account. Step 2: Invoice your client or agency (we can provide you with a template). Complete a straightforward Excel spreadsheet, similar to an expense claim form which should take about 15 – 20 minutes per month to complete. Step 3: Forward any correspondence you get from HMRC or Companies House to your accountant and they will take care of it for you. Thinking about setting up a limited company? If you’re unsure about your responsibilities or you’re looking for guidance about how we can help you, give us a call. Call us on: Limited Company Frequently Asked Questions How much could I take home as a limited company director? Contracting through your own limited company is arguably the most tax-efficient way of operating and, depending on your circumstances, you could take home around 75%-80% of the contract value. For more details, read our limited company vs umbrella company guide. Will my contract fall inside IR35? The only way to be sure whether your contract falls inside or outside IR35 is to have it reviewed by a specialist. You can read our guide to IR35 to find out more. If I’m inside IR35, should I still contract through my own limited company? Even if your contract is inside IR35, you can still claim travelling and accommodation expenses, 5% of your turnover, get the benefit of VAT flat rate (saving around £2000 a year), and get the interest on the funds held within your own company, so yes, from a financial point of view it could still definitely be worth it. Find out more about what being inside IR35 could mean for you. What expenses can I claim as a limited company director? If you are outside IR35, you can claim back anything that is “wholly and exclusively” incurred to carry out the day to day running of your business. This includes insurance, accountancy fees, travel and accommodation expenses, motor expenses, computer hardware and software, telephone, stationery, training etc. For more information read our full guide to expenses. Why SJD? SJD Accountancy is the UK’s largest and longest-standing specialist provider of accountancy services to contractors, freelancers and SMEs. Our credentials: Experienced, specialist providers to 15,000 contractors, freelancers and small to medium-sized businesses. Outstanding customer service since 1992. The British Accountancy Awards ‘Accountant of the Year’ winners in 2011, finalists in 2013 and highly commended in 2012. Shortlisted for the ‘National Firm of the Year’ award in 2017. Winner of the title ‘Best Contractor Accountant’ award voted for by visitors to Contractor UK for over a decade. Offices across the UK. Deemed IPSE Accredited Accountants and fully MSC compliant. A recognised authority on IR35. How much do you charge? The fees for our services start from £120 plus VAT per month, there is no minimum length of time you need to appoint us and there are no entry or exit fees. Check our packages for more detail. Did we miss something? If you’ve got a question we didn’t cover, request a callback from our team below or call us on 01442 275 789 Where did you hear about us? I found you on Google/Bing/Yahoo I’m a current client A friend told me about you I saw your adverts online A recruiter told me about you I’m a previous client Other I’d like to enquire about… SJD Elite SJD Premium SJD Essential SJD Online Limited Company Formation Something else Call me back… This morning This afternoon Tomorrow Would you like to receive emails from us? Yes please No thanks We want you to know exactly how our service works and why we need your details. Please read our Privacy Policy before you continue. Most Popular Pages If you need any further help or advice try, these most popular links. 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