Frequently Asked Questions
Answers to any questions you may have about umbrella employment, limited companies, or contracting in general.
Limited Company FAQs
Where can I find more information about setting up my own limited company and available support?
All the information you need is available on MyAccountant.
What insurance will I need to protect my limited company?
At a minimum, you will need some form of prefessional indemnity and public liability insurance.
Will HMRC still request an annual tax return if I run my own limited company?
Company Directors are still required to furnish annual tax returns to ensure they cover any additional income that is not taxed through the PAYE system.
Am I able to claim expenses through my own limited company?
Provided you have been assesed outside of IR35, you are entitled to claim allowable expenses, including expenses for arranged periods of working from home.
Is running my own limited company the best choice for me?
If you have been assesed outside IR35 / you know that you are entering a long term assignment / you are able to achieve a high rate of pay, then operating your own limited company is likely to be a better overall option for you.
How straightforward is it to set up my own limited company?
Setting up a limited company may take about two weeks. Initial incorporation can take place in as little as 24 hours but registering for VAT and payroll takes a little longer.
Can SmartWork help with setting up a limited company?
Yes. Our sister company MyAccountant.co.uk has two decades of experience as a specialist contractor accountancy firm. They are fully compliant and hold the same accreditations as us.
Are there any disadvantages of running my own limited company?
Depending on your circumstances trading through a limited company can offer a higher level of tax-efficiency. Running a limited company requires some additional administration, record keeping and updation of financial accounts; but with the help of an accountant this is generally quite easy to do.
Should I set up and run my own limited company?
Setting up and running your own limited company as a Director and shareholder may come with some tax benefits and other freedoms but it does bring with it the responsibility for all of the governance and filings needed by law to act as a Director within a limited company. Operating as a limited company will also define the type of work you are allowed to undertake.