Running a successful limited company typically involves huge amounts of responsibility. Although you’ll be given the freedom to become your own boss, you’ll also be in charge of managing your clients, marketing your services and, perhaps most importantly of all, handling your own finances. This makes selecting the best limited company accountancy service a crucially important decision.
When it comes to finding the right accountants for a contractor’s limited company, Brookson One can help. It’s common for those running their own limited company to feel overwhelmed, with a multitude of constantly changing variables and concerns to deal with on an ongoing basis. Indeed, sometimes it can even feel as though it’s almost impossible to achieve that work-life balance that you’ve been dreaming of, despite being your own boss. However, the good news is that Brookson One are here to lighten the load.
Here at Brookson One, our specialist team of limited company accountants deliver expert financial advice and support to all contractors and freelancers working through a limited company. Whether you’re new to freelancing, switching accountants or simply changing the way your business operates, Brookson stays with you every step of the way.
We provide an all-inclusive service which helps you to get set up, maximise profits and grow your business, giving you greater peace of mind and letting you concentrate on doing what you do best. With over 20 years of experience providing expert financial advice and support to owners of limited companies, we have become renowned for our excellent customer care and round-the-clock support network.
With a focus on delivering a clear and straightforward service, our accountants are hand-picked to manage your account. Your specially appointed expert accountant will monitor your company’s finances on a daily basis, ensure your limited company stays up to date with ever changing tax laws and legislation, and keep you in the loop at every step. Our limited company accountancy service also provides you with access to Brookson Connect - an online portal which gives you full control and visibility of your business accounts, making life as a self-employed limited company owner even easier.
A limited company is the most profitable form of self-employment. While some may find it more beneficial to set up as a sole trader or operate through an umbrella company, limited companies provide greater tax efficiency and allow freelancers to maximise their take-home pay. Just as crucially, it lends your business a valuable sense of credibility and authority.
Most small UK companies set up as a private limited company (LTD), but every business is different and you may feel stronger as a public limited company (PLC). Either way, the main benefit of setting up this way is the increased financial protection it provides, since you won’t be personally liable for any losses your company makes.
The owners of a limited company are only financially responsible for the money they’ve invested, and this is the perfect solution for freelancers who either want to expand their business or simply make it more professional.
The IR35 legislation is designed to prevent workers from avoiding tax through ‘disguised employment’. This is where a self-employed freelancer operates as a limited company, and therefore receives the accompanying tax benefits, but is doing the same job and working under the same constraints as an employee.
For many self-employed professionals, these rules can cause great amounts of confusion, with many freelancers unsure of whether they’re operating inside or outside of IR35. However, if you are considered to be a ‘disguised employee’, then you’ll have to pay the same tax and National Insurance contributions as a regular member of staff.
Limited companies need to make sure they’re operating outside of IR35 if they want to really maximise their profits, which is why our IR35 reviews can prove so valuable to your business. Instead of worrying about breaking any rules, Brookson makes sure you’re in line with the legislation and keeps your business as profitable as possible.
Starting a limited company has never been easier. Once you’ve decided that this is the right working option for you—and whether to operate as a PLC or LTD – you can get your new business set up online in just a few short hours.
Every limited company needs to be registered by Companies House, but you no longer have to wait for weeks until all the paperwork is processed. Instead, in less than 24 hours, your limited company can be all set up and ready to go.
Once it’s been registered, your business will then be legally protected and Companies House will prevent another company from stealing your name or choosing something which is too similar.
However, to complete the incorporation process, you’ll need to provide Companies House with some further documentation, such as the Memorandum of Association. Once you’ve signed up with Brookson, one of our dedicated accountants can take care of this for you and make sure all the paperwork is completed correctly.
There’s no arguing that setting up as a limited company involves increased levels of responsibility and pressure, but it will also provide all kinds of fantastic benefits. Without question, there are pros and cons involved with every form of self-employment, and whether this is the right option for you will depend entirely upon your own circumstances. For many people, the advantages will significantly outweigh the drawbacks.
Limited company owners can take the majority of their income in the form of dividends, significantly reducing their taxable salary. Although you’ll now have to pay Corporation Tax, setting up as a limited company means you’ll be paying less personal tax than other forms of self-employment, since you can simply choose the most tax efficient combination of salary and dividends to make yourself as profitable as possible.
When operating as a limited company, you’re only liable for the amount of money you’ve invested, meaning that you aren’t personally liable for any losses made by your business. Ultimately, this means you’ll be much better protected if things were to go wrong, while other freelancers simply don’t have these high levels of protection.
A limited company is legally recognised as a completely separate entity from its owner, meaning that the ownership, bank accounts and assets of the business aren’t tied to a specific individual. This helps to create a stronger, more stable business, since it ensures it ensures the company will continue to survive even if it outlives all of its shareholders.
Since a limited company is its own entity, this means that clients and customers will be dealing with your business, not you as an individual. Some larger businesses have been known to avoid dealing with sole traders, and becoming a limited company helps to project a more professional image which is more appealing to potential clients.
After registering with Companies House and creating your own brand, your business will develop a certain sense of credibility and instil confidence in your client base.
Due to the fantastic tax efficiencies involved, setting up a limited company will maximise your profitability and take-home pay, since limited company owners can potentially keep up to 86% of their profits.
The shares of a limited company can easily be transferred or sold to another party, so the business won’t cease to exist after the resignation, retirement or death of the owner. This ensures that succession planning becomes much more straight-forward, since ownership of a limited company can change hands easily at any time; ensuring its long-term future.
There are a number of self-employment options for you to choose from, and your decision will largely depend on how you want your business to operate and what you hope to achieve as a self-employed worker. Although limited companies are typically the most profitable option, this doesn’t necessarily mean it’s the right path for you, and you need to think carefully about how you’d like to set things up.
Setting up a limited company is the best option for people who plan on freelancing on a long-term basis. Due to the potential financial rewards involved, it’s also the recommended option for self-employed workers who make more than £15 an hour, since this is the most effective way of maximising those profits.
Operating as a sole trader is the quickest way to get your business up and running, although it doesn’t provide the same financial security as a limited company. Sole traders run their own business as an individual (meaning you’ll be personally liable for losses), but you’ll also be able to enjoy complete control and operational flexibility.
Instead of Corporation Tax, as a sole trader you’ll pay tax on your business profits via a self-assessment form. This is a great option for self-employed workers who want to own a business but also minimise paperwork and enjoy greater privacy, since you won’t have to register details with Companies House.
Working through an umbrella company is a great option for freelancers who want to enjoy the freedom of self-employment, but without any of the financial responsibility. This setup is recommended for freelancers or contractors who are just looking to dip their toe into self-employment, particularly those who are only dealing with sporadic or short-term assignments.
Brookson offers an umbrella company solution which removes the hassle of confusing paperwork, as we keep on top of important tax deadlines, process client invoices and pay you just like a regular employee. This is by far the simplest method of self-employment, but the financial rewards obviously aren’t as great.
Unlimited IR35 Reviews - IR35 can be incredibly complicated, and many new freelancers feel unsure of whether they’re affected by it. We offer free and unlimited IR35 reviews to make sure you’re fully compliant with HMRC legislation, with each review carried out by our own employment law specialists.
Your Own Dedicated Accountant - Our accountants are hand-picked to manage your accounts, as we ensure you always receive the best financial support possible. Your chosen accountant will keep you in line with tax laws and monitor your finances on a daily basis, giving you one less thing to worry about.
Online Portal - In addition to valuable financial support, you can also access Brookson Connect – an online portal which provides you with full control and visibility of your accounts. This unique platform is incredibly smart and intuitive, making it easier for you to review transactions, submit expenses and check your tax position.
Unrivalled Accountancy Services - Our dedicated accountants are experts in the field of limited company accountancy, boasting over 20 years’ experience and offering proactive advice to increase the amount of money you can make. We provide fully automated bookkeeping and complete year-end service.
Getting set up as a limited company can seem like an incredibly daunting prospect, especially if you’re new to the world of self-employment. Fortunately, Brookson is here to help you get started, and you just need to fill out one of our contact forms to claim your FREE consultation!
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