An individual can form their own Limited Company; this is a fully-fledged Limited Company, typically wholly owned by the company’s Director. The Director would completely control the business; be the sole signatory on the bank account; typically claim travel and subsistence expenses on engagements; offset the cost of capital equipment required by the business; claim other business costs; and plan an income strategy possibly including some dividends.
The benefits of contracting using a Limited Company are shown in the diagram below:
Running a Limited Company using one of 1st Options recurring services will take up to an hour a month. Trading using a Limited Company gives a Freelance Consultant:
- The highest possible earnings from the contract
- The flexibility to grow and change the contracting business, for example by employing others or outsourcing tasks to other companies
- Ability to adopt planning strategies to achieve personal financial goals