Switching to Limited
Many contractors use umbrella companies as they offer convenience and a hassle free way of getting paid. Often, they continue to use an umbrella company for the whole of their contracting career as the ease of working is the most important thing to them. There’s nothing wrong with this and we will of course do everything we can to maximise their income whilst they use One Click Umbrella.
There may come a time though, where a contractor feels that they may be able to earn more or market themselves more professionally if they are operating via their own Limited Company and decide to make the move and “go limited”.
Using a limited company can allow a contractor to take advantage of certain tax allowances and pay themselves in a more tax efficient manner, in exchange for a small amount of additional administration – typically around 30 minutes paperwork a month.
The One Click Group can help you make the switch from One Click Umbrella (or another umbrella company for that matter) as smooth and as hassle free as it can be.
We will set your new company up within 24 hours, register your company with the relevant authorities and help you with opening hour business bank account with no additional charges, all part of our monthly accountancy service.
The Benefits of Switching to Limited
Once you reach a certain salary as a contractor or freelancer, it makes sense to consider operating as a limited company. There are many benefits attached to becoming a limited company, and these include the Flat Rate VAT scheme, the ability to offset more business expenses and lower rates on dividends.
Should I change to limited company status?
Contractors often decide to start operating as limited companies once they start earning around £18 an hour or around £36,000 a year. This option may also be suitable if you’ve started taking on more long-term contracts of around six months or more. If you do decide to change your status to that of a limited company, you will be met with more paperwork. However, help is available to enable you to tackle and stay on top of this whilst you focus on what you do best.
Reducing the admin burden
As a limited company contractor, you will face more dealings with HMRC. Nonetheless, you’ll usually be able to look forward to higher take-home pay, protect any personal assets that you might lose if you face financial difficulties as a sole trader and gain greater credibility and regard from your clients. Simply by operating as a limited company, you win the respect of bigger-name clients and start taking on bigger, better, more exciting projects.
Transparent, dependable services
A trusted accountancy service can help you keep on top of your admin duties when you operate as a limited company. Quality One Click accountants can greatly reduce any worries related to tax and accountancy, helping you meet deadlines and giving you the peace of mind that you require. You’ll gain access to reliable accountancy software and can even assist you with the actual process of setting up your limited company. We also offer fixed-fee accountancy to make budgeting much simpler whilst ensuring all your needs are covered.