Benefits of Contracting

Depending on your situation, contracting can be a great alternative to PAYE, especially if you are in a temporary or fixed term position. As a Limited company contractor, you are able to reduce your tax liabilities and off set your expenses.

This is how it works:

  • The agency pays your company's fees gross.
  • If appropriate, distribution of your company’s profits as dividends will significantly reduce your national insurance liability.
  • Initial planning of the company's share allocation could considerably reduce, or even avoid, any higher rate tax liability.
  • Your business expenses can be claimed and set against the company's income.
  • If your company is VAT registered all VAT incurred on business expenditure may be reclaimed or it may be beneficial to join the flat rate scheme.

What to do next?

A 'ready-made' company can be obtained from a list over the telephone or, if you wish, one can be formed in a name of your own choice (if that name is available). The agency will draw up a contract in the name selected.

Either download our application form here or contact a member of our team who will make contractor accounting easy for you.

At Accounting IT we make contracting easy. You will have your own dedicated bookkeeper to assist with all your accounting requirements. We can even form the Limited company for you. To find out more, please contact Peter, on 0800 141 3393.