I'm selfemployed but the company I work for is not allowing me anymore to be self-employed. My agency suggested me to go limited company rather then getting paid PAYE. I'm earning £20000-24000/year maybe more but that amount is for sure , on this amount of money I would be better of limited company? I'm working in construction so I will have to register the company CIS. Thank you in advance! Best regards.
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1 Answer
In my experience no, it's not worth it.
The amounts you are earning do not make it any more tax efficient to be a LC and there is a fair bit of extra paperwork involved, registering is pretty simple but the tax returns are quite complex and you would probably need an accountant to do those for you every year, at around £600 a time, or more.
If you were earning more (Say over £30k) then the tax benefits might be worth it but for your situation I'd go with PAYE.
I am not an accountant or lawyer, but did have to set up a LC for a client I did some contract work for. I also freelance and do that as self-employed (sole trader) and do an annual self-assessment tax return.
