Limited Company Solutions Vs Sole Trader Solutions
During the current economic climate, it has become increasingly commonplace to question whether or not it is a good idea to set yourself up as a self-employed contractor. Indeed, the downturn has seen a large number of employees made starting a Limited company redundant although their roles are still being fulfilled under contract arrangements. This may mean returning to the same workplace in the same capacity but as a contractor rather than an employee.
If you are thinking of starting up as a self-employed contractor, whether in the IT, oil and gas, renewable or the nuclear sector you will most likely be listening to all sorts of sources about what the best options for you are, in terms of how you should trade, and how you should become self employed. It can be quite daunting taking the plunge into being self employed, especially if you have no previous experience.
Some sources of information will be friends who have taken the plunge into self employment themselves, family members who know their fair share about starting up and running a business or the usual way we find out any information; searching the internet for some advice yourself. Sometimes however, the information you find can be conflicting or a bit confusing. The last thing you want is to be confused when making a serious decision which affects your working life and finances.
What you need is a specialist contractor accountancy and business advisory service, which has lots of experience in incorporating companies to take care of everything for you. It’s important to have someone to talk you through the process so you are aware of everything involved with running a limited company, and what the director responsibilities are.
One or two specialist contractor accountancy companies offer free limited company set up or free set up as a sole trader. This means that everything which needs to be taken care of at the beginning of a busy and exciting time, is! Contractors can then concentrate on preparing for their new contract role, without any hassle or worry.
We have seen a trend recently of diminishing umbrella trading solutions, with the tightening up of temporary workers legislation and the costs involved for contractors. In consequence, many specialist contractor accountants now stick to the most compliant methods of trading which means setting contractors up either as a limited company or a sole trader business.