CCA Contractor Central Accounting has been taking care of the accountancy needs for freelancers and contractors. Using their expert knowledge of the market, they can unlock your business potential and provide you with a first-class service that is tailored to your requirements.
Their advice will always be clear and impartial, and they will make sure that any questions you have are answered by their team of professional industry specialists.
With over 14 years’ experience within the freelancer industry, CIPP accredited status, you can trust them to provide you with the highest level of service combined with client satisfaction.
If you feel that setting up your own limited company is the right move for you, there are a few things you need to consider first. Take a look at the top points from our sister company CCA below.
IR35 status for contractors is not as straightforward as you may think. We’ve come across many contractors, recruitment consultants and accountancy service providers who think contractors are automatically outside of IR35 if they have their own limited company, or are working as a freelancer.
If a contractor is part and parcel of their end client – regardless of any recruitment agency involvement – it’s difficult to avoid IR35. As a result, the contractor’s income will be taxed as if they are employed under PAYE (including employers’ NICs) even if they have their own company. Unfortunately, there’s no such thing as a ‘watertight’ or ‘IR35-safe’ contract, as HMRC can look at the actual substance of the role, rather than just the written T&Cs of a professional contract.
As with all our clients, we strongly recommend that you have your contract reviewed by a professional contract reviewer such as our associates Bauer & Cottrell.
Please note that you may fall inside IR35 even if your fellow contractors operate outside of IR35, as individual circumstances can differ even if the role is seemingly identical.
While you are working under our umbrella company, all of your income will be taxed under PAYE, and we are responsible for transferring the rest of your earnings to you. In doing this, you will receive your entire net income for the month immediately as if you were employed by the client directly.
Limited set-up works a little differently. We can only run your payroll and/or recommend dividend income based on a prudent estimation until we finalise your accounts, or perform a deemed payment computation at the tax year-end, if you are inside IR35. Furthermore, any tax planning will affect the amount of cash you can withdraw from your company.
With this in mind, please ensure you have discussed your monthly cash flow requirements with your accountant.
Unlike an umbrella company, you are responsible for your own limited company. Even with our most comprehensive package, which minimises your administrative burden, you will still need to complete some additional admin work. It will be your responsibility to transfer tax and National Insurance payments to HMRC by various deadlines throughout the year. It is also essential that you keep your accountant informed of your company’s affairs by regularly updating your accounting records.
All limited company details and their annual accounts, including directors’ information, can be obtained by the general public via the Companies House website.
Yes, providing you’re happy with the considerations we’ve highlighted above, and even if you are caught under IR35, you may still be a little better off financially, compared to an umbrella set up.
However, it’s worth bearing in mind that if your contract is only short term, part-time or at a lower rate, the gain is inconsequential. We highly recommend taking into consideration all the above factors before making a decision.
The Premier Package is the complete business package around.
Focusing on maximising the financial and operational efficiency of your limited company, your accounting & administrative duties are well and truly taken care of.
Business Accounts Setup
Business Bank Account
Direct Debit Setup
IR35 contract Review
Dedicated Account Manager
Online portal training
Engaging with your end client
Weekly/ Monthly HMRC RTI Submissions
Quarterly VAT submissions
Assisting in debt collection
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