Limited Company Benefits

Working through a Limited Company is the most tax efficient way to work as a self-employed professional, you can typically expect to take home around 81% - 86% of your contract value. Brookson's specialist tax advisors are always on hand to offer guidance to further maximise your income - so you never pay more tax than you need to

What are the benefits?

Whilst running a Limited Company does have its fair share of responsibility, there are many advantages too.

  • Limited liability - In simple terms, if you run a Limited Company you are protected should things go wrong. Assuming all rules have been followed, as a director you will not be personally liable for any financial losses made by the company.
  • Separate entity - A Limited Company is a legal entity in its own right. This means that everything from the company bank account, to the ownership of assets relates to the business. They are totally separate from the interest of the directors and shareholders.
  • Tax - As a director and shareholder of a Limited Company you could elect to take the majority of your income in the form of dividends, which enables you to manage your own tax liability and potentially save on National Insurance costs.
  • Perception - If you plan to do business with larger companies, it can help if you are working via a Limited Company as it gives a more professional image. In some industries, it may even be a mandatory requirement as some will not deal with sole traders or partnerships.
  • Protection - As well as the limited liability protection mentioned above, once you have successfully registered your company, your company name is protected by law. Companies House has very stringent rules for the naming of companies so no one else can use the same name as you, or anything deemed too similar.
  • Ownership and succession - As the sole shareholder in your business, you own the business. However, a Limited Company can easily transfer ownership of shares or existing shareholders can sell a stake in the company to other parties at any time. If for example a shareholder wishes to retire, or bring a new director on board, it is far easier to transfer ownership, or part ownership, of a Limited Company than it is with a less formal business structure.
  • Take home pay - It’s safe to say that this is the area where you can really reap the rewards of running your own Limited Company. The only person you need to pay as a Limited Company is yourself – combined with the tax efficiencies on offer, this means you can keep anything from 81 to 86 percent.

Get the right advice

If you would like to understand more about your working options and how they affect you financially then you will find our free, no obligation consultation and take home pay illustration really helpful.

Simply tell us which sector you work in, your annual income or agency rate, hours per week and any business expenses you incur - and we'll do the rest!

Make an enquiry

Make an enquiry

Please enter your details below