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Engineering & I.T. Contractors
It is traditional that many I.T. and Engineering contractors work through a Limited Company. Recruitment Agencies will pay a much higher hourly rate than if you are directly employed by them, and there could be worthwhile tax and national insurance savings.
The use of a Limited Company could be very beneficial but this varies with individual circumstances. Please give us a ring for a discussion.
Limited Company status has a very beneficial tax advantage to anyone who is not caught by the IR35 provisions. In that case, they would normally be better off being employed by the agency. Our notes assume that IR35 is not a problem.
The extent of our services very much depend on the ability and attitude of our customer. We feel these can be categorized as follows:
- Those who are very aware financially and can handle their own book-keeping, and VAT returns. We provide full advice on setting up the business, systems and software to use. They come to us for annual accounts, Corporation Tax and Self Assessment work.
- The average contractor who is still financially aware, but would rather we look after all the book-keeping and formalities.
- The contractor who would really prefer to draw a weekly “wage” and would often chose to use an umbrella company. Someone who has difficulty in controlling their own finances.
We have a colour leaflet which can be mailed to you if you send us your name and address (click here) or you can view the contents by clicking here.
Our Charges
For the first category of Contractor who does most work himself, our change is £60 per month plus VAT.
The second category is the most common, we do all the book-keeping and VAT returns. Our charge is £75 per month.
For those customers who want the benefits of being a limited company but not of the administration, we charge £110 per month to cover the much increased workload. Phone or email for more information.
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