Expert advice is needed

There are a few realistic options when going into business for yourself:

Sole trader
In simple terms, unless you have some specific circumstances, it is unlikely that a sole trader arrangement will afford many benefits.

Umbrella Company
in general terms, an HMRC-compliant umbrella arrangement will be easier to manage than a limited company but will be less tax-efficient and leave you with less in take home earnings, as you will be paid under the PAYE system. However, an umbrella arrangement may be the most suitable if you are only intending to freelance for a short period of time, in between permanent jobs, say for three months or less.

Limited company
This arrangement is generally the most tax-efficient one for individuals earning in excess of around £25,000 a year because

Tax efficient earnings - you can receive your money as a tax-efficient mix of salary and dividends.
Save on National Insurance - you can save national insurance (without affecting your pension rights).
Earn money on flat rate VAT - registering for flat rate VAT scheme is generally beneficial for contractors.

All-in-one complete package, including personal tax return.

£60.00

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Company formation

If you are a new business or want to transfer to a limited company structure, we can help form your new company quickly and effortlessly.

We can normally form and register your new company within the day - usually in a couple of hours, and then ensure other services are registered including VAT & PAYE if required.

Already Contracting or Freelancing?

Why pay more for a contractor accounting service when Clever Accounts can provide you with the same service but with plenty more added benefits thrown in at a much lower price compared to "traditional" contractor accountants.

What's more, you'll get a fully functional online accounting software to help streamline your bookkeeping, import bank statements, send invoices to customers and lots more. No more cumbersome spreadsheets to update or separate bookkeeping systems to manage. Our online software and accounting service is seamlessly integrated to provide you with everything you need from a contractor accountant.