Contracting through a limited company, sometimes referred to as a personal service company or PSC, is an efficient way of trading. It is also perfectly legal.
That is to say, legal if the rules are followed. That’s where we come in.
When meeting new contractors, the area of greatest doubt is over what money can be taken out of the company. We will explain how things work with salary, allowable expenses and dividends. This way, you will soon become accustomed to what can be an easy method of records and payments, and budgeting for tax.
We will talk through your contract conditions and establish the expenses that can be claimed for tax. We will also help you avoid pitfalls that could land you with costly tax charges for company benefits.
You will have to keep some records. Of course you will, you’re in business! However, at the start, your circumstances will be discussed, and a simple method of recording will be explained. Spreadsheets can be provided for you to copy.
You will not need to run software, or submit regular records so we can prepare reports you do not need. Your business will be simple enough to avoid unnecessary jazzy analysis. However, if you have a software package which works well for you, then we can work with the results.
The company will need a PAYE scheme, but this we can manage for you. You can choose to register for VAT, and we can manage that as well.
After a year or so, the company accounts will need to be prepared; we will explain the elements of the Companies Act with which you need to be most familiar – so you know what it is you are signing – and prepare the accounts from your records.
We also promise not to pester you with regular technical updates. Please ask us if you hear about something such as the new rules on pension schemes or the dividend tax, that may have a bearing on your company, and we will answer promptly. And not send you a bill on every occasion.
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