What are the benefits?

Limited company

Advantages

 

  • Running your own business is the most tax efficient way of working, unless caught by IR35.
  •  Extra flexibility when claiming business related expenses (such as training, IT equipment and software).
  •  You’re in control of your financial affairs, we arrange them to work more tax efficiently.
  •  Your assets and your company’s assets are separate.
  •  Running a business can be hard work, Danbro makes it easier with accounting, financial and tax planning advice all under one roof. Better business opportunities, as some organisations will only deal with limited companies.

Disadvantages

  • As a company director, you’re responsible for ensuring your business is run compliantly. That’s where a specialist and reliable accountant like Danbro will help.
  •  Unless you choose an accounting partner like Danbro, you’re responsible for invoicing, providing detailed accounts and meeting HMRC deadlines.

 

Employment Business

Advantages

  • By joining an employment business, you’re a PAYE employee but may be able to claim legitimate business expenses, depending on your working circumstances.
  •  All of your tax and NI is administered for you and Danbro will handle your invoicing, deductions and payments too.
  •  You only pay for the service when the employment business processes your payments.
  •  No initial setup of a limited company required. You simply register to use the employment business.

 

Disadvantages

  • As an employee of the employment business you receive a salary subject to PAYE tax and National Insurance contributions. As a limited company you can pay yourself using dividends which are not subject to PAYE tax and NIC’s.
  •  You are fully dependent on the employment business invoicing and processing your payments correctly and on time.