We get a lot of questions here at Kingsbridge HQ about the pros and cons that come with running your own limited company. As you’d expect, working for yourself comes with greater responsibility. However, the benefits are worth the extra work. When you make the jump from being a permanent employee to a contractor you become your own boss. Setting up a limited company (as opposed to becoming a sole trader or joining an umbrella company) is often the most tax efficient way of working as a self-employed professional. There are plenty of benefits, but also a few things you’ll need to be aware of. Read our list below:
- Your take-home pay can be higher than other options available – PAYE, umbrella, or sole trader. You’ll have full control of your finances.
- You can make serious tax savings. There are various opportunities available that can be tailored to you and the needs of your business.
- You can claim for a variety of business expenses, including your business insurance
- There’s a lower personal risk. Your personal assets will be protected if your business fails (provided you meet your statutory responsibilities as a director.)
- You’ll be able to portray a professional image of your business to clients.
- You own your business.
- You’ll become legally responsible for your company’s financial obligations. You’ll have to be ready for the greater level of administration, including the annual filing of your company accounts, as well as the admission of quarterly and annual corporation tax and VAT returns. That might seem a little daunting but a good accountancy firm will look after all of this for you with little fuss.
- Your costs may become slightly higher. Contracting comes with a small number of responsibilities, one of which is making sure you have adequate insurance cover. You need to make sure you’re protected, that you’re in line with the terms laid out in your contract, and that your end client is protected too.
If you’re a contractor looking for insurance cover, then Kingsbridge should be your first port of call. We offer simple, comprehensive, and compliant insurance for contractors across a variety of industries. We also guarantee that you won’t find the same policy for a cheaper price elsewhere. In fact, we’re so confident that we’ve even got a price promise. Want to know more? Head on over to our website, or give us a call on 01242 808740.