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Associates do not have to work exclusively for Dbi and welcome those that are registered with other consultancies. However, associates must have their own limited company or work via an umbrella company. Essentially, this is a tax related decision taking into account professional and public indemnity insurance and levels of professionalism.
Setting up a Limited Company
Taxation and limited liability are the main benefits of setting up a limited company.
- Generally corporation tax is less for a limited company than income tax for a sole trader or partnership.
- As the salary of the director does not have to be fixed until the results of the years trading are known, you can choose how to be paid to minimise tax, i.e. a mixture of salary, pension and dividends.
- The limited company offers you protection as you have limited liability for debts should the business fail.
Register with Companies House
Contact Companies House on 0870 3333 636 or go to www.companieshouse.gov.uk to request a registration starter pack. This pack includes two forms that need to be completed and also requires the new company to produce it’s constitution in the form of a Memorandum and Articles of Association (standard documents which can be obtained from any legal stationers for approximately £20) and details of any directors, the company secretary and members and the company’s registered address.
Register with an Umbrella Company
Dbi can recommend the following companies:
Each of these companies can be used as an umbrella service for contractors who do not wish to have the burden of administration, cost and risk that comes hand in hand with running your own limited company.
For further information, please make contact with the companies. Dbi Consulting Ltd accepts no responsibility for any fees charged by or advice taken from them or any other company in this regard.
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