VAT returns, annual company returns, accounts and tax returns still need to be completed even if you are in between contracts. However, we recognise that fewer transactions reduces the workload and so will reduce your fees by 30% for any month you are not in a contract.
Your commitments are that you:
- pay your monthly fees on time by standing order
- provide us the information we ask for promptly to allow us to meet you and your company’s filing deadlines
- have paid as least six month’s fees before we prepare your company’s accounts
Here are some key questions and answers to help you decide:
- Which structure is more tax efficient? If you are outside of IR35, definitely a limited company
- What are the take home pay rates? Ltd co 80% plus (if outside IR35), Umbrella 65% plus
- Why the difference in pay rates? Umbrella company’s maximise your tax liability – you pay employers and employees National Insurance. It’s almost not possible to pay more tax.
- What will be my national insurance contributions be? Nil if properly structured via a limited company and outside of IR35. You pay 12% employee’s NIC’s AND 13.8% employer’s NIC’s if you work under an umbrella company arrangement
- Is it a hassle running a limited company? Umbrella company providers often “sell” low hassle but it isn’t a hassle running a Ltd company. It takes 1/2 hour a month to run a limited company with a decent accountant (like us)
- Expenses? Your expenses are capped at 5% of contract value if you work for an Umbrella. The limit doesn’t apply if you work through your own Ltd company
- Which is cheaper in terms of fees? There shouldn’t really be a difference. However, there is a broad range of fees across both structures from firms offering umbrella and accounting services
No you are not, however, we do ask that you have paid at least six month’s fees before your statutory accounts need to be filed.
Our standard package is designed to give you all the services that you need. The starter package is for those who are comfortable doing some of the work that needs to be done themselves.
It usually takes less than 3 hours (if ordered before 2pm) and £20 to set up a limited company. We can do that for you (usually for free) and just need the following information:
- A company name and some alternatives (in case it’s taken)
- Your full name
- Your personal address (this is not published by Companies House)
- Your date of birth
- Your place of residence
- Your nationality
We will act as your registered office (if you want) and your director’s service address (an address where a director can be served notice).
We will discuss that with you given your circumstances but usually contractors and freelancers benefit from the flat rate scheme for VAT. See here for more details.
We will do all of that for you. You just need to fulfil some formalities so that we can be set up as your agent with HMRC.