1. Advantage of limited company status.
Higher take home pay - You'll typically take home around 75% - 80% of your contract by working through your own limited company, you can take home as much as £15,000 per year more on a £350 daily rate compared with using an Umbrella Company. Claim on a wider range of expenses - Anything that is solely classed as a business cost can be claimed back on expenses. Trading through a Limited company means you can claim on a wider range of expenses such as accountancy fees, equipment, software, phones, travel, Internet and much more. Complete control of your business – you keep complete control of your financial affairs meaning you do not have to risk your money with any third party administrator or umbrella company. Personal assets are covered - As a non-limited business, personal assets can be at risk if the business fails, but this is not the case for a limited company. As the shareholder you can not be held personally liable for the debts of a limited company, meaning your personal assets are not at risk. Ease of use - Running your own business isn't difficult; submit spreadsheets to your accountant - just like umbrella time-sheets and expenses. Working through your own limited company does require a certain level of commitment but typically most contractors tell us they spend around 15 – 20 minutes per month managing their company. Company given more credibility - Operating as a limited company often gives suppliers and customers a sense of confidence in a business and quite often other companies prefer not to deal with non-limited businesses. Protection of your company name...even if you are not contracting- Once your proposed company name is registered as a limited company, the name is protected by law and no one else is allowed to use it, waiting to register your company could mean you lose the name you had initially wished to trade under.
Disadvantage of Limited company status.
A certain amount of paperwork...
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