Graphic version of this page | Change how these pages look
Text only
Sitemap
Careers
Eagle Contracting
Get a Free Illustration
Call us Now on:
0800 731 5368
[Image - Eagle Contracting]
Print this page
Home
/
Limited Co. Services
/
FAQs
Contractor
Concerns /
Freelancer
Facts
Watch our
video!
Limited Co. Services
FAQs
Previous - Online Access
AnswerClose
What is a Personal Service Company (PSC)?
This is a limited company that typically supplies the services of individuals to end user clients, either directly or via an agency.
AnswerClose
How does take home pay differ between Limited and Umbrella options?
As a contractor, freelancer or interim working through your own limited company, you can generally expect your take home pay to be between 60% and 75% of your contract value excluding expenses. If you are employed through an umbrella company, your take home pay will be less, often, normally around 60% excluding expenses.
AnswerClose
What is the first step in the process of setting up my own limited company?
All contractors opting to trade through a Limited Company are advised to complete a contract review. To ensure compliance, we use the services of an acknowledged expert in the taxation of PSCs who will be able to confirm your tax status as per HMRC Guidelines. Essentially, we need to find out whether or not you are in business or working in a manner similar to that of an employee. We will then provide you with a professional opinion as confirmation for your records.
AnswerClose
Will I need to complete a contract review for every contract I win?
If your contract is lasting longer than 1 month, HMRC stipulate that you complete an IR35 review.
AnswerClose
What happens if any of my contracts are deemed ‘inside of IR35’ (i.e. fails the contract review)?
We can provide you with a consultation with a qualified accountant to discuss your options. We can accommodate a number of scenarios that are still fully compliant. Normally the result is that income from that contract is taxed under PAYE.
AnswerClose
What are my responsibilities as Director of my Limited Company?
As Director you have a responsibility to comply with various legislation. We can advise you on many matters and provide services to suit your circumstances and individual requirements. You will need to record your income and expenses within the 24/7 online book-keeping system we provide and pay all VAT and payroll returns as we advise to HMRC.
Self assessment tax returns must also be filed – this is an additional service we can provide or advise you on.
AnswerClose
What expenses can my business claim?
There are tax reliefs available in terms of claiming business expenses for your company but expenses can only be claimed if wholly, exclusively and necessarily incurred in the purpose of the business. Typical expenses you can claim include:
Our monthly admin and accountancy fees
Contract review fees
Limited company formation fees
Travel expenses
Accommodation and subsistence
Mileage
Business telephone calls
Computer equipment and stationary
Professional membership fees for any professional body you pay to be a member of (books, subscriptions, and courses as long as they are related to your work via your contract).
All business insurances – e.g. Professional Indemnity Insurance.
Please note that all original receipts must be retained to claim expenses.
If you are working from home, you can claim £3.00 per week without being challenged by HMRC.
Also, you can claim VAT on expenses if you choose to be VAT registered through your Limited Company (only if you choose not be Flat Rate registered, unless expense is over the value of £2000).
AnswerClose
What is the Temporary Workplace Rule - the 24 month expense rule?
A temporary place of work is defined as a location where the employee carries out a task of limited duration. This is generally regarded as a period of no more than 24 months. Therefore if an employee is sent to work in a location for a period exceeding 24 months it is not a temporary place of work and travel expenses cannot be claimed. As soon as you are aware you will be at a location for more than 24 months that location is no longer a temporary workplace.
AnswerClose
Do I need to be VAT registered?
Not unless your sales exceed the annual sales limit, however most contractors will benefit from registering for VAT using the Flat Rate Scheme. This enables you to recover VAT from your customers at 15% and pay a lesser rate to HMRC, although you will be unable to recover VAT on any purchases. Unless you incur an unusual amount of VAT on purchases the scheme is usually of financial benefit to you.
AnswerClose
Do I need insurance?
Normally yes – you will need to contact your agency/client for guidance on the types and amount of insurance coverage required in line with your current contractual terms and conditions.
AnswerClose
What salary can I pay myself?
We will provide you with a calculator template where you can insert different salary levels to determine the most suitable salary for you. It is normal to set a salary commensurate with the work performed with any excess income withdrawn as a dividend.
AnswerClose
Can I take on and pay someone else through a limited company?
Yes providing the second employee is carrying out duties for the company and not solely employed for tax relief purposes.
AnswerClose
Can I get a mortgage through a limited company?
This is not advisable as the mortgage is then a liability of the limited company and not you personally. This is very dangerous if the limited company then goes into administration as all the assets then become property of the state.
AnswerClose
What about pensions?
If you take out a company pension then you can obtain tax relief through the company for this, whereas a pension taken out personally would allow tax relief in your personal tax return.
AnswerClose
I am currently working as a contractor – how easy is it for me to transfer to your services?
Very easy. We contact your current accountant and request the transfer of all company records to us to provide a starting point with your Limited Company. Thereafter we organise a contract review and application.
AnswerClose
What is IR35?
IR35 affects all contractors who provide their services through a Limited Company. IR35 is the code name applied by HMRC for tax legislation first introduced in April 2000 to remove certain tax breaks from freelancer trading.
An IR35 review covers a detailed review of your contractual terms and conditions, your daily working practice and an evaluation of issues such as Control, Substitution, Integration, Exclusivity and Mutuality.
AnswerClose
AnswerClose
AnswerClose
AnswerClose
AnswerClose
AnswerClose
AnswerClose
AnswerClose
AnswerClose
AnswerClose
AnswerClose
AnswerClose
Contact
Eagle Contracting
15a Harbour Road
Inverness IV1 1SY
t. 0800 731 5368
f. 01463 717 870
info@eaglecontracting.co.uk
Enquiries
We're ready
and waiting
to speak with you!
Testimonials
"I would personally like to thank Eagle for the excellent work you have done on my behalf" John Chapman, Contractor
"I refer your company to many people as simply you are very good at what you do and your staff are a major asset to your business" Gordon Forbes, Contractor
"Thank you so much for your support and speed. I really appreciate it." Sanjiv Junes, Contractor
"If I ever need to contract my services in the UK again, I will not hesitate in using Eagle for this and would highly recommend you to anyone" Gavin King, Contractor
"Unlike other providers, there's no pain with Eagle" Martin Wilson, Contractor
"Thank you so far for all your support!" Andrew Derbyshire, Contractor
Special offers
Umbrella Services just
£17.50 per week BEFORE TAX RELIEF!
FREE Consultation with a Qualified Accountant!
FREE Gift or Service for a time if you refer a friend or colleague!
Find out more
Website
Home
New Contractors
Umbrella Services
Limited Co. Services
Employers & Agencies
About us
Contact
Eagle Contracting
15a Harbour Road, Inverness, IV1 1SY
t. 0800 731 5368
f. 01463 717 870
info@eaglecontracting.co.uk
Eagle Contracting Ltd is a subsidiary of Scarista Ltd
registered in Scotland No. 152660 trading as
Eagle Consulting VAT number: 624 4072 63
The Eagle group are:
© Copyright |
Statutory information |
Privacy policy |
Disclaimer
Website design by Structure
(External) Our passion. Your success. Sitekit CMS