Quote:
Originally Posted by derekgas
You get better tax breaks with a limited company, you take a premium rather than a wage, and pay less tax on that too, if you have been trading as a company and want to go limited, you have to change your bank acount and some of your suppliers will see it as trouble, the thought being that you are in difficulties and protecting your assets, you will need a chairman, director and treasurer (at least 2 people), and have to provide your books annually and on time to company house.
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I can understand the company scenario and the mistrust associated with it. An IT contractor is effectively a sole trader but most agencies won't pay you as a 'business' unless you are a limited company. Presumably this is all because of tax laws. The umbrella companies are a pain because as well as paying the normal tax and NI you also have to pay the emplyers NI yourself too.