Limited company and self employment services for freelance contractors

Both options offer their own advantages and disadvantages depending on your personal circumstances and long terms goals. As OrangeGenie will be able to provide both limited company services and an umbrella service, you can be assured that you will be given unbiased advice as to which option is best for you.

Operating your own limited company allows you the opportunity for tax planning to minimise the amount of tax and National Insurance that you have to pay. As a general rule of thumb, you could expect to take home between 75-80% of your contract income.

OrangeGenie will aim to remove most of the administration work for you by dealing with HMRC and Companies House on your behalf. All you will need to do is raise your invoice to your client and take a few moments each month to record your expenses. The time taken will not be very much more than submitting timesheets and expense claims to us if operating though our Umbrella company.

When forming your own limited company, you will be appointed as director (and employee) of the company and will be responsible for managing the company affairs. The company will pay you a salary for acting in this capacity. You will also be the owner (shareholder) of the company and will receive dividend income from the company’s taxed profits. The frequency and amount of this dividend income is decided upon by the company’s director(s). Each year, the company will have to pay corporation tax on its profit where profit is calculated as the total amount of sales income earned less any business expenses incurred. As a director of a UK limited company, you will be legally obliged to complete a personal tax return each year. OrangeGenie will take care of this for you.

Forming a company is a simple process. Once you have called us and answered a few simple questions we can arrange for your company to be up and running within just a couple of hours.

The shareholding of the company will affect the split of any dividends you declare. The dividends are paid direct proportion to the number of shares held by each shareholder. Anyone can be a shareholder and they don’t have to be an officer of the company.

Yes you can, switching over to OrangeGenie is easier than you think; we will contact your previous accountant and request all the necessary information.

A dividend is a share of a company’s profit that is paid to the company’s owners (shareholders) as a return on their investment. Dividend income you receive will not be subject to National Insurance contributions and will be tax free if you are a basic rate tax-payer. You will pay 25% income tax on the amount of dividend income received above the basic rate tax threshold.

You will be able to claim any expense that has been incurred whilst performing your contract e.g. travel and also the costs of operating your Limited Company such as accountancy fees. In addition it may be possible to claim for training, Professional Subscriptions and to make tax efficient Pension Contributions through the company. Your dedicated accountant will be able to discuss your personal circumstances with you in more detail.

You can simply choose to leave your company dormant, in case you decide to go back to contracting, or close your company down. If you chose to close your company down, OrangeGenie will assist you with this process.

For £99 per month OrangeGenie will ensure you have your own accountant on standby to answer all your questions. All your business returns will be completed and filed and you will have access to online accounting software that will mean you will always be in control of your finances.

Call us on 0845 055 7055 and speak to one of our specialist business accountants, or alternatively send an email to admin@orangegenie.co.uk and one of our consultants will call you back at a time which is convenient to you.