More and more umbrella contractors are choosing to create their own company, but is it time you followed the same path?
For some people the thought of going limited can seem daunting. However, if you want to be the head of your own business and don’t mind taking on a little extra paperwork, then it’s time you considered making the switch from umbrella.
If you’re not sure if going limited is right for you, use our compare tool to get an idea.
Why should you go limited?
- You could make a lot more money – We found that contractors who switched to limited took home 18% more every month on average.
- You’ll be more tax efficient – As a limited company contractor you pay yourself a basic salary and the rest is paid in dividends, which are not subject to National Insurance contributions.
- You can grow your venture – Limited companies can obtain a separate credit rating on which to borrow capital, and contractors who choose this setup can secure assignments with clients that require business-to-business contracts. For those with entrepreneurial ambitions, you also have the option to grow your venture into a small business by hiring a team of employees.
Our sister firm ClearSky Contractor Accounting, which has helped thousands of contractors set up their own limited company, is holding a meet-the-accountant event on June 23rd and 24th at London’s Strand Palace Hotel.
ClearSky's personal accountants will be on hand to offer expert advice on a one-to-one basis. Parasol contractor employees keen to find out more about going limited are invited to attend the free event. Click here to find out more and reserve your place.