Everything you need to know about setting up as a limited company

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by Jessica Tabinor on


  • Our new blog series guides you through the different pay types, their key points and also the advantages and disadvantages of each option.

  • Read on to find out more about contracting through a limited company.

Choosing to set up as a limited company is a viable pay option for many contractors.  Contracting through a limited company can be a tax-efficient way to work on a contractual basis. Rather than your employer automatically deducting your tax contribution, as a limited company you are responsible for calculating and sending your own tax and National Insurance Contributions to the HMRC. This does mean a lot more paperwork, but it can provide significant tax benefits.

Things to consider: IR35
  • IR35 Legislation – For contractors IR35 will be introduced to ensure all individuals operating via a limited company were paying the correct levels of tax. IR35 regulators assess income against tax contributions as well as the contracts between limited companies and their clients.

  • IR35 Test – If you are a contractor operating as a limited company you could be required to undergo an IR35 inspection. If you are under inspection, typically an inspector from the HMRC will assess the contract between your limited company and your clients.

  • IR35 Failed Test – If you do fail the IR35 test or if IR35 applies to your contract with your client, you will lose the tax benefits of operating as a limited company and may be forced to pay the same tax and NIC’s as a standard PAYE employee.

You can find more information about IR35 from our dedicated IR35 Portal. 

Positives of contracting through a Limited company
  • The most tax efficient pay option.
  • You can claim tax relief on business revenue expenditure.
  • Limited liability protection.
  • Eligible for Flat Rate VAT.
  • Perfect for career contractors who have passed IR35 tests/measures.

Negatives of contracting through a Limited company
  • More paperwork and self-assessments required to be completed by you.
  • IR35 must be considered and potentially passed.
  • Not suitable for short term contractors or those who fail IR35 tests.

How do I claim business expenses as a limited company?

One of key benefits of choosing to contract through a limited company is the opportunity to claim tax relief on business expenditure. So, it is important that you understand the process of claiming expenses back.

Contact your employer to find out more information about how to can claim business expenses.
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Conduct of Employment Regulations

Should I opt-in or opt-out?

If you are new to contracting through a limited company you may want to find out more information about the Conduct of Employment Regulations, and what option would be best for you. The Conduct of Employment Agencies and Employment Businesses Regulations 2003 (Conduct Regulations for short) were introduced by the Department for Businesses, Innovation and Skills (BIS) to set minimum standards that must be provided by recruiters, for workers/contractors and limited companies.

The regulations apply automatically to contractors who are a registered employee of a client. However, as a limited company, you are technically not an employee, so you have the option of opting in or out of the regulations.

What do the regulations provide?

The regulations essentially provide protection to contractors and ensures that we, the agency, will provide you with the necessary level of protection and support set out by the regulations to ensure you are protected before and throughout your contract. You can find more information about exactly what the regulations cover here: Conduct of Employment Regulations

Things to consider: Opting out

Opting out of the Conduct Regulations can have some disadvantages for contractors, mainly with the loss of protection provided by the regulations and agency. Opting out gives us less control over your contract, which means we can’t protect you if for example there was an issue with payment from your client, or any other type of dispute with the client.

Things to consider: Opting in

The most important thing to consider when choosing to opt-in to the regulations is that this could affect your IR35 status. As the Conduct Regulations apply mainly to regular PAYE employees, the HMRC could subject your limited company and contract with your client to an IR35 test. If IR35 is found to apply to the contract, you will likely lose the tax benefits of contracting through a limited company.

Ready to search for a new job with Morson? Click here to find your next opportunity. Or, if you’re a contractor and want to find out more about IR35 and how it may affect you, click here to read our blog series.

Cx Jobs

Project Controller - P6

Project Controller with a defence/aerospace/nuclear engineering background is required to lead tasks and activities to deliver the approved scope of work in accordance with the specified objectives, as agreed with the Senior Project Manager or their delegate. The Project Controller will also monitor resource demands and actual availability of the project team and prepare reports showing budgets, actual and forecast costs and earned value information in accordance with APM guidelines. This role will be a remote role with some time spent in the office in the North Yorkshire Moors.The role involves but is not limited to the following:Supports the project manager with the day-to-day management and deliverable completion of the projects, using agreed resources, by an agreed date to agreed safetystandards and an agreed quality within an agreed budget.Responsible for coordination, scheduling and reporting of activities as agreed with the Project Manager.Responsible for coordinating all project gate reviews, recording of any actions and the production and approval of the gate review report.Facilitates the identification of lessons learnt from previous projects and programmes, as well as any new lessons from their project team.Undertakes the role of risk coordinator, and ensures the project follows the agreed risk management plan.Responsibility to ensure a project resource plan for the entire project lifecycle is regularly reviewed and updated.Responsible for coordinating the project's change management process, and specifically being the chair of the regular change board.Ensures that a master decisions & assumption log or equivalent is reviewed and updated on a regular basis.Responsible for establishing and auditing against a project configuration management process.Supports the project manager to establish and undertake the Project Scope reviews.Responsible for the development, monitoring and updating of a detailed manage the project workstream schedule.Reporting on the project workstream progress on a regular basis and escalate when exceptional circumstances arise.Has responsibility for the creation and upkeep of the Project Files, meetings, records and correspondence, and maintaining the Project Controls information.Delegated chair for weekly progress review and workshop meetings as required.Chairs project change board meetings and ensures all other necessary actions and minutes are recorded as required.Ensure that the project is given appropriate priority and ensuring that adequate resources are available and escalate to the project manager as required.Ensure all project reviews are carried out in accordance with project governance set out in the project management plan.Support the project manager in the preparation of initial and ongoing estimates of the project costs, including resource, materials and contingency costs.Monitor cost expenditure for the pre-sanction works against estimates and report cost position to Project Manager on a regular basis.Manage Project Documentation, from Initiation to Handover, meeting all milestones within the Project Programme to ensure that the project progresses in a timely manner.Person SpecificationKnowledge and experience of a Programme Management OfficeDemonstrable, specific skills and experience in planning, ideally in a complex programme environmentProficient in P6Working knowledge of Microsoft ProjectStrong analytical, problem solving and reporting skills to deliver precise insight on programme performance

Systems Engineer

Lead Systems Safety Engineer required to work on major rail projects. Contract or Permanent Staff position available Contract (Inside IR35) Role is required to support the application of the Railways (Interoperability) Regulations and the Common Safety Method on Risk Assessment to rail projects. Previous Railway Systems Safety Engineering experience essential. Client requires railway experience in order to hit the ground running. Working Knowledge in HAZOP/HAZOP/RAMS analysis in a railway environment. Demonstrable track record in engineering safety management. Knowledge of safety verification requirements of Network Rail and London Underground.

Quality Engineer

An opportunity has arisen for a Quality Engineer to join the team with our prestigious clientSummary of Role:To assure the fitness for purpose (airworthiness) of products and drive/lead a Right First Time & zero waste culture. Also to maintain and expand regulatory, customer and third party accreditation and to ensure effective systems of assurance.Principal Accountabilities:Establishment and maintenance of the Quality Management Systems and associated Regulatory, Customer and Third party Accreditation's.Liaison with Regulators, Customers and Third Parties on issues which affect accreditation, airworthiness and product conformance to achieve regulatory and customer accreditation.Establish and manage the Quality Metrics across to achieve policy deployment goals.Lead the drive to achieve Right First Time and zero waste through SQCDP Value Stream activity utilising lean tools and methodologies. Identification of Root cause and the implementation of robust corrective actions and control measures.Support all functional teams in key areas of shared responsibility including Training, Continuous Improvement, Risk, Process Engineering and Process Responsibilities/Accountabilities.Key Stakeholder in determining innovation / technical development strategies.Work cross functionally to help drive a consistent and effective approach to New Product Introduction (NPI).Actively participate in bid and contract reviews and assist with quality aspects of project management as required to ensure bid success and bid delivery.Uphold processes that assure the effective health, safety and environmental best practices as defined by the Business HSE management system.The Post holder is expected to work flexibly within the role. It is expected for the post holder to carry out activities for which they are competent. Additionally, the post holder will also carry out additional duties upon request from Senior Management.QualificationsDegree level education, in anengineering / science discipline.Qualifications recognised by regulatorybodies (eg EASA , FAA etc. )Demonstrable continuous professionaldevelopment.Experience10+ years in an equivalent role /environment.Experience of installing and maintainingQuality Management SystemsExceptional product and processexperience.Demonstrable experience in anadvanced manufacturing environment.Demonstrable experience in decisionmaking roles.Demonstrable risk assessmentexperienceDemonstrable experience of commercialawareness / budgetary controls.Skills and AptitudeExcellent understanding of qualityassurance management principles andpractice.Target driven with excellent analyticalskills to support continuousimprovement.A Leader and Communicator able tomotivate and manage cross functionalteams.Strategically focused but with strongoperational knowledge.Detailed understanding of SpecialProcess requirements within AdvancedManufacturing Organisation.Strong knowledge of the AerospaceRegulatory Environment andAirworthiness principlesUnderstanding of LEAN principles andpractice.Managerial / Business acumen andawareness.

Trend Research Engineer

Currently recruiting for a Trend Research Engineer for a large well know automotive client. The automotive industry is transforming from over a century long businesses that relied on car production and sales, the industry now aims at becoming 0 emission mobility provider. This change is influenced by various technical and non-technical factors including for example the availability of new technologies as well as socio-political and environmental drivers.A passionate, experienced mobility ecosystems expert is welcome to join the Trend Research Team to help the client comprehend the changes occurring in the mobility space (and the space surrounding mobility), particularly within smart cities in Europe. This work will also lead to identifying technology and business research opportunities coming from the above mentioned observations. The successful candidate should show experience in one or more of the following disciplines:Europe smart cities and smart mobility - both technology and socio-economic expertise is a mustData analyses - previous experience in information research/ analyses will be required to successfully perform in this jobYou will have strategic thinking mind-set to translate the research findings to new technology and business research opportunitiesGeneral knowledge of the technology fields related to electric vehicles (EV), EV charging infrastructures, connected cars and autonomous cars is an assetIdentification and creation of new work (make new research project proposals & new budget requests) Qualifications/SkillsUniversity degree (bachelor or higher. Preferably in an engineering field)Previous, documented experience in smart cities and smart mobility topicsPrevious experience in data research and data processingAble to process complex information (information identification, compiling and distilling down to compact formats)Ability to self-propelled work (be able to work on their own) but also to work in a team when necessaryGeneral understanding of electric vehicle, connected cars and autonomous cars technologyGood communication skills (written and spoken)Good presentation skillsGood computer skillsWilling to travel (within Europe)

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