Your time is money: don’t waste it
Setting up your own limited company could be the right choice if you have complex financial affairs or multiple income streams – or because of specific advice from your accountants. It may also lead to higher net returns after deduction of taxes.
But running your own limited company includes a whole range of responsibilities that could take valuable time away from your contracted work.
For example, you will need to:
- keep Companies House informed of your tax and legal status
- pay for the services of an accountant
- produce detailed bookkeeping and accounts, sales invoicing and VAT records
- be responsible for submitting and paying accurate corporation tax returns on time
- respond to letters from accountants/advisors/HMRC/Companies House etc
- produce and send out invoices
- be responsible for collecting and chasing payment of your invoices
- run a company bank account
- make sure all documents/returns are filed in good time to avoid significant late filing penalties
- complete an annual self assessment declaring any dividends received to the HMRC…
- …and pay any extra tax liabilities due on these dividends each year – plus estimated amounts throughout the following year
- conduct regular IR35 reviews to ensure you comply fully with the law
- maintain appropriate insurances
And remember, failure to meet your obligations could result in criminal conviction and fines. Which is why it pays to go with Gain – in many more ways than one.