Will You Spring into Action?

Spring is well and truly underway, bringing with it the perfect opportunity to reflect on the start of the year and make meaningful changes. Just as many use this season to refresh and make change, why not take the same approach to your contracting career? If you’ve been contracting for some time, now could be the ideal moment to take the next big step—establishing your own Personal Limited Company.

Here, we recap the key factors to help you make an informed decision.

Will Your Client Company Accept a Change?

One of the primary considerations when contemplating a move is the acceptance of your client company. Review your existing contract to understand your obligations and any potential complications from this perspective, and ensure that any changes you propose will remain compliant with the client’s policies.

Do You Have Reasons to Make a Switch?

Beyond client acceptance, there may be personal or professional reasons driving your desire for change. Here are a few scenarios to consider:

• Multiple Clients: Are you looking to diversify your portfolio and work with multiple clients simultaneously? This can provide more stability and opportunities for growth.
• Hiring Employees: Do you need to hire an employee to support your current projects? Expanding your team can help manage workload and increase productivity.
• New Business Ventures: Are you considering developing a new business idea you’ve always wanted to explore? Now might be the perfect time to transition and invest in your passion project.

If any of these apply to you, it might be time to consider setting up a Personal Limited Company. This structure offers more flexibility and control over your contracting career.

Do You Consider Contracting a Career Choice?

Contracting can be a fulfilling career choice, offering autonomy and the potential for higher earnings. However, it's essential to consider whether contracting aligns with your long-term career goals.

• Long-Term Vision: Do you see contracting as a long-term career path, or is it a temporary phase? Understanding your long-term vision will help you make decisions that align with your career goals.
• Professional Development: Are you taking steps to continuously develop your skills and stay competitive in the contracting market? Investing in your professional growth is crucial for long-term success.

Do You Currently Require All Your Income to Be Paid Monthly?

Financial stability and requirements are key factors in deciding whether to make a move. Consider the following:

• Monthly Income Needs: Do you need all your income to be paid to you on a monthly basis to meet your financial obligations? If so, is there a requirement for you to change your company structure?
• Building Company Reserves: Can you afford to build company reserves? If your monthly financial obligations are less than the income you receive, this is where you can look at the options of building funds in your company, and using these funds in the future in a tax-efficient manner, or for future business growth in your contracting career.

Do You Have Business Expenses and Assets to Consider?

Another important factor to consider is your business expenses and assets.

• Business Expenses: Do you currently have a high volume of business expenses you require to be processed for your contract opportunity? Managing expenses efficiently can impact your overall profitability and tax obligations.
• Business Assets: Are you looking to purchase business assets in the future? Investing in business assets can be a strategic move for long-term growth and efficiency.

If this is the case, proceeding to explore setting up a Personal Limited Company would be worthwhile.

Why Make the Shift?

1. Flexibility and Autonomy

Imagine having complete control over your income and schedule. As a company director, you can:

• Decide how and when to draw a salary.
• Retain profits in the company for future planning.
• Take breaks for travel, family time, or upskilling without financial strain.

This approach not only provides greater flexibility but also offers significant tax-saving opportunities, helping you retain more of your hard-earned income in the long run.

2. Build Your Personal Brand

Your brand is your reputation, and establishing a Personal Limited Company helps you:

• Create a professional identity that appeals to recruiters and clients.
• Showcase your expertise through social media or even your own website.
• Network effectively, increasing your reach and visibility within your industry.

A strong personal brand enhances your credibility and positions you for more lucrative contract opportunities.

3. Work with Multiple Clients & Diversify Your Income

Running a Personal Limited Company enables you to:

• Work with multiple clients at the same time, reducing reliance on a single income stream.
• Explore other revenue avenues such as consultancy, training, or investments.

Many contractors discover new opportunities after setting up their company, leading to increased financial security and business growth.

4. Scale and Expand Your Business

As your client base grows, you may need additional support. A Personal Limited Company allows you to:

• Hire employees or subcontractors for project work, administration, or marketing.
• Delegate tasks, allowing you to focus on high-value contract work while others manage operations.

Ready to Make the Switch?

Conducting a review is an excellent opportunity to evaluate your contracting career and decide if it's time for a change. Consider your client's acceptance of potential changes, your personal reasons for switching, whether contracting aligns with your career goals, and your financial stability. If after careful consideration you decide it's time to move, setting up a Personal Limited Company might offer the flexibility and control you need to take your contracting career to the next level.

For personalised guidance, contact your dedicated account manager or reach out to us at 01-8077106. Our team is here to support you every step of the way, ensuring a smooth transition to setting up your Personal Limited Company.