Limited companies: fact vs fiction

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The vast majority of contractors will view the incorporation of their own company as an important milestone in their career.

Despite the variety of benefits available as a company director, there are a few misconceptions that could put you off from making the leap. That’s why we’ve debunked four common myths to put your mind at ease and help you take the next step in your contracting career.

It's too expensive to incorporate a company

Setting up your own company is both quick and inexpensive. Registering online with Companies House costs as little as £15 and can be completed in 24 hours. Postal applications cost £40 and take eight to ten days, while a same-day service is available at a price of £100.

Alternatively, specialist contractor accountants provide additional assistance through the incorporation process, thereby supporting you every step of the way. The price of this service can vary, with providers charging anything from £100 to £150, or even more.

Some contractor accountants, such as ClearSky, will incorporate your business free of charge and still provide the additional support you need.

I’ll end up drowning in paperwork

It cannot be denied that limited company contractors have to complete more paperwork than their umbrella counterparts. Seeking help from a specialist contractor accountant, however, can help relieve the burden.

Specialist accountants will support contractors every step of the way, and help make sure they never miss an important deadline. This leaves you free to concentrate on your assignments, safe in the knowledge that your obligations will be met.

I won't have time to visit an accountant

Today’s contractors lead extremely busy lives, making it unlikely they’ll find the time to book appointments with their accountant. Specialist providers, on the other hand, will usually offer access to a secure and reliable online portal on which to manage your account.

At ClearSky, we like to think we go one better. While our clients can use our state of the art online portal day and night, we also provide a telephony service to give contractors a more personal approach.

There's too much legislation to get my head around

Legislation can be a real headache at times, so it’s important to seek the right help. Specialist contractor accountants can assist you with understanding important legal frameworks such as IR35.

This helps you stay whiter than white as far as HMRC is concerned, again allowing you to focus on your assignments and your career.

Want more advice?

If you think setting up your own company is right for you, or you need an extra push to make the leap, ClearSky can help. Our dedicated team is on hand to assist with any queries you may have, offering tailor-made advice to suit your personal circumstances.

For more information, or to sign up, call us today on 0800 032 5326 or email enquiry@clearskyaccounting.co.uk.

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