Opening a limited company as a contractor

You have just landed a new job as contractor but need to open a limited company to get the contract.

Step by step guide of what you need to do:

1. Speak with an accountant – it will save you considerably money and hassle if you seek a professional  advice early on. The Institute of Chartered Accountants of England and Wells has a search facility here.

2. Register a limited company (can be done by your accountant) and can cost anything between £12 (Company House) and £200 (some accountants will charge to open the company for you). It is important to consider the share ownership split here as it will have significant impact on your tax position later

3. Consider if you fall under IR35 legislation. ContractorUK have a good primer on what the legislation is and there is a test you can take here. If not conclusive consider taking a insurance against possible ruling against you.

4. Open a business bank account. I recommend Metro bank to all my clients for opening hours that fit around your schedule, call centre that allows you to speak with real live person in UK without any machines and the option to open an account same day and get your bank cards to boot.

5. Get professional indemnity insurance and any other insurance specific to your contract. I recommend Hiscox.

6. Register with HMRC for Corporation tax, Payroll and VAT (can be done by your accountant)

7. Find an accountant if not already done in step 1.

As chartered accountants Shubraka can help you with all of the above.