top of page

Self-employed or Limited Company?

Updated: Apr 29

Firstly let's clear up a common misconception amongst estate agents, lawyers, mortgage brokers et al.

If you are a director of a limited company you are NOT self-employed, even if it's a one-man company with only you as worker/shareholder.


Why be limited? Ask us, we'll tell you.

e.g.

  • tax planning is possible through accumulation of funds within the company

  • Dividends easily paid to whomever your shareholders are.

  • Profits retained in a limited company are sheltered from higher rates of personal tax

  • Limited company status often helps a business prosper, as third parties view you as more ‘serious’ through the limited structure

  • Raising of finance, and taking in outside investors to help a business expand can only easily be achieved once a limited company

  • Banks prefer substantial businesses to trade as limited companies

  • Protection from irate creditors in the event of a business mishap is worth having, although sadly HMRC can sometimes get at personal assets of directors!




If you're not sure what's right for you, read our guide, and then maybe give us a call and talk through your questions.



Guide954 ltd (2)
.pdf
Download PDF • 80KB





Contact us with any queries about this post

on abell@chartered.org or 0207 148 4785





0 comments

Recent Posts

See All

Comments


bottom of page