^ TopDo you need a Ltd Company?
Limited company or umbrella – deciding on a payment structure
First time contractors have two options for setting up a payment structure: Limited company, or umbrella company. This article discusses the differences between the two and gives practical advice on which option to choose.
What is a ‘personal service company’?
Many contractors who work for clients through their own limited companies frequently find their business referred to as a ‘personal service company’.
^ TopSetting up your company
Setting up a limited company for contracting
Contractors have several options in setting up a limited company: breakdown of shareholding and purpose are important. You can do it all yourself, or a company formation specialist or an accountant can do it for you.
Choosing an accountant for your limited company
Having decided to contract via the limited company route you will need to get yourself an accountant. This article explains the issues you should consider when choosing one.
Contractors get qualified accountants from PCG
The Professional Contractors Group accredits accountants who are specially trained to help contractors. It is a precious resource.
Choosing an accountant - checklist download
Download a checklist to help the decision of which accountant to choose.
Choosing a company name
Choose something catchy and original but avoid using something too specific.
How much salary should a contractor pay themselves as director?
Discusses the optimum level of salary to pay as a company director.
Should contractors with limited companies take salaries?
Contractors are wise to take some salary in the interest of avoiding the attentions of the Revenue.
Processing your company payroll when contracting via a limited company
Maintaining a company payroll seems a mundane task but Phil Richards of Blevins Franks explains it is a vital statutory requirement for contractors.
Transferring company shares
Explains the processes for transferring company shares.
Opening a company bank account
Advice and guidance for choosing and opening a company account.
Contractors may find limited liability partnerships useful
A Limited Liability Partnership may have value for contractors. But a limited company is probably more useful.
^ TopRunning your company
How contractors should run limited companies
There are a number of issues that contractors should be aware of in running their own limited companies.
A contractors legal obligations as a company director
Explains the legal obligations a contractor has as a director of their own limited company.
Timesheets, invoices and payments
When you are contracting you need to complete timesheets and raise invoices. This article explains the process.
How to prepare an invoice - examples and templates
How to prepare an invoice. Examples and templates.
Penalties incurred for late filing of forms
If you use a limited company for contracting you will need to file certain forms each year. If you don’t then you could be liable to substantial penalties.
Small business late payment - how to manage late payers.
Explains government legislation to protect small businesses and actions that can be taken to combat late payments.
Accounting for assets and depreciation in your accounts
Explains how assets and depreciation are accounted for in your Limited Company.
Dealing with multiple contracts being inside and outside IR35
Accounting requirements when you have contracts both inside and outside IR35.
How to change your accountant
Want to change your accountant? Find out what you need to do to move to someone else.
When contractors need to change accountants
An accountant is a trusted business partner, but when you feel you need to change accountants, the process can be handled without excessive strife.
Contractors can run multiple businesses from one company
Contractors have every right to run as many businesses as they choose from their limited companies. They can also own other companies. But there are a few issues they should be aware of.
Checking annual accounts of your limited company when contracting
Contractors who work through their own limited company are required to prepare, check and submit annual accounts to Companies House for the business.
Contractor start up expenses that can be claimed
All the expenses you can incur on start up and what can be claimed.
Contractor doctor: can I claim for pre-incorporation personal expenses?
When first starting out, contractors often find that the paperwork takes time to catch up. Barry Roback, of JSA Group, explains what personal expenses contractors can claim if starting work before incorporating their company.
Valid expenses as a contractor - what you can claim
We describe in detail what expenses are allowed to be claimed when you are contracting.
Contractor doctor: does taking a break get around the 24 month contractor expenses rule?
Answers a contractor's question about the 24 month expenes rule and explains the rules in detail.
Contractor doctor: can expenses be claimed for entertainment?
Answers a question from a reader about the rules for claiming entertainment expenses.
Claiming contractor expenses for use of home as office
Discusses if claims should be made for use of home, what the rules are, and what can be claimed.
Buying gifts for employees and clients - what you can claim
The tax man is not particularly generous when it comes to treating your staff as this article explains!
Buying a company car - is it worth it?
Should you buy your own car and charge it to the company, or purchase it as a company car through the company?
Making charitable donations from pre taxed income
We discuss the rules regarding donations to charity from your Limited Company.
How to charge contracting expenses back to your client
Contractors who incur expenses when working for their clients can claim them back, but they need to be processed correctly depending on the nature of the expense and your VAT status.
How contractors should process contracting expenses
Contractors who run their own limited company can use really simple systems to ensure they keep accurate, up-to-date expenses records for their tax and VAT accounting, as well as ensure they get to claim everything they can.
Taking on your first employee - financial and legal issues
Consideration when deciding to expand your contracting business by taking on an employee.
Hiring a temporary resource – option and issues to consider
Options and issues to consider when deciding to hire a temporary resource.
Sub contracting work: tax and accounting issues
If you decide to sub contract work then there will be tax and accounting issues to consider.
Processing fees for fellow contractors should be avoided
Tempting though it might seem to help a friend in need, contractors should resist invoicing on behalf of fellow contractors, as it could backfire.
Working with foreign and offshore companies
Financial aspects to consider when dealing with companies outside of the UK.
^ TopSalary and Dividends
Dividends and contracting: calculation, payment and taxation
You may take dividends from your limited company whenever you are certain that there are after-tax profits to be divided up. Here's how you calculate them.
Splitting dividends to maximise net income
Splitting company dividends can be an effective way of maximising net income. We discuss the topic and Section 660 issues.
Calculating taxes payable on dividends
Explains how to calculate any further tax payable on dividends you receive from your limited company
Declaring dividends: the paperwork - dividend counterfoils and company board minutes
There is little paperwork or reporting associated with dividend payments.
Contractor Doctor: How can I account for overpaying my dividend?
Phil Richards of Blevins Franks accountants explains to contractors how to account for an overpaid dividend.
^ TopTaxation and VAT
Contractor tax: limited company and personal taxes explained
Depending on how you structure your finances and your IR35 status will depend on the type and level of taxes you need to pay.
A guide to VAT for contractors
What is it? Do you need to register? An introduction for contractors.
The flat rate VAT scheme - should contractors join?
Explains the scheme and shows how to determine whether it is advantageous to join.
HMRC VAT inspection - preparation and process
How to prepare and what to expect when HMRC conduct a VAT inspection
HMRC PAYE/NI tax inspections explained
A guide to Inland Revenue tax inspections, explaining the preparation and process of the HMRC PAYE/NI tax inspection.
Tax on employer provided assets and computers
Tax issues relating to the personal use of company assets and computers used by employees.
^ TopHMRC Inspections
Minimising the risk of a HMRC inspection
Discusses the issues that raise alarm bells with HMRC, and advises how to minimise the risk of an investigation.
Contractor doctor: can investigations be avoided by closing my company?
Can closing your Limited Company or making it dormant protect you from Inland Revenue investigations?
HMRC self assessment (SA) investigations – how they work
Explains the process of a HMRC Self Assessment investigation.
^ TopClosing Down or Making Dormant
Making your contracting limited company dormant
How to make a limited company dormant and the responsibilities whilst it is dormant.
How contractors can close down their limited companies
If a contractor changes career path or decides for another reason that their limited company is no longer needed, they can choose to close it down.
^ TopMoving between Ltd Company & Umbrella
Moving from a limited company to an umbrella: reasons and practicalities.
Discusses the many reasons you might have for wishing to move together with practicalities of moving.
Reasons and practicalities of moving from an umbrella to a limited company
Discusses the reasons and steps to take to move from an umbrella arrangement to a limited company.
^ TopPensions & Investments
Contractor pensions - pension options and pensions advice for contractors
Explains away the jargon and points out the opportunities available to contractors who are looking to channel their hard earned income away from the tax man and into their own pocket.
Can company money be used to offset a mortgage?
Discusses the issues surrounding the concept of using company money to offset your mortgage.
Considering property investments via your contracting limited company
Considering using company profit to invest in property? This article explains reasons why that is not a good idea.
Making tax efficient use of excess company profits
Discusses the tax effective options and issues for utilising excess company profits?