Benefits of Incorporation

 

Setting up a limited company provides you with a great deal of financial benefits, although the pros far outweigh the cons, it can be difficult to fully understand how it all works.

 

The Pro’s

  • Limited companies are more attractive for agencies and end clients, you are more likely to secure contracts and be considered for placements as a limited company service provider.
  • You have the flexibility of running your own business and potentially delegating tasks to employees and growing your own brand over the course of your career.
  • You have more control over projects and contracts, as you can choose opportunities.
  • Profitable Limited Companies are attractive to potential investors and can be sold as an asset.
  • Many business costs are eligible for tax relief, which allow them to be eliminated when calculating taxable profit.
  • Limited companies can save up to £5,000 of income per year by registering for the flat rate VAT scheme.
  • You determine your payment structure, and we can help you with strategies to meet your NIC requirements, while ensuring your eligibility for National Pension Scheme.
  • You can also receive tax-free drawings in the form of dividends if your company is in profit.

 

The Cons

  • Setting-up and running your own limited company is a long-term commitment is not ideal if your are on a short term contract.
  • Key responsibilities as Director of a Limited Company include: accurate accounting, sales and marketing to find and secure contracts, insurance cover, business bank account, payments and credit control. Tax receipts must be collected for all business expenses.
  • Cephas will consider your circumstances and aim to provide the best accountancy support and advice based on your requirements.
  • As a Limited Company you should consider the IR35 and Managed Service Company legislation.
  • As a limited company you will often have to negotiate your own contract terms as a legal entity you may fall outside the baseline standards set for the treatment of employees while on contract.