The term personal service company is one which is often used to describe a contractor, freelancer or consultant who operates through their own limited company.
There are numerous reasons why individuals might choose this option rather than operating as an employee or umbrella contractor.
For some it is the most tax efficient way of working. This is usually the case for contractors earning more than £25,000 a year.
It also offers the individual a greater degree of financial security than working as a self-employed freelancer.
Setting up your own personal services company can be a positive move to help grow your business, it can help convey a professional image which should in turn help with securing higher value contracts.
Of course running a limited company comes with responsibilities and a certain amount of administration. This doesn’t have to be onerous, our sister company Exchequer Accountancy Services can help with setting up and running your limited business. In addition to accounts they also offer additional services to help minimise the time spent on day to day administration.
Business experts are predicting an increase in demand for contractors over the next twelve months, particularly in key areas where there are skills shortages such as construction and engineering as well as IT. Specialists in niche areas such as cyber security and big data are likely to be particularly sought after and in a position to negotiate higher rates for work. With this in mind it looks as though now could be a great time for anyone who has been considering taking the plunge and embarking on a contracting career.
For those that aren’t quite ready to move to setting up their own limited company, operating as an umbrella contractor or umbrella employee offers many of the benefits of freelancing coupled with the security associated with being employed. For example at Exchequer Solutions our umbrella employees are entitled to sickness pay and other benefits such as maternity and paternity pay.
If you have questions about your options we’d be happy to discuss them with you just give us a call or request a call back.
