Saving Tax – The Legal Way!
With the government encouraging people to start up new businesses, and with the lack of support and funding, there is a greater need to save as much as possible in way of tax.
With the growth of freelance consultants around the UK, setting up as a limited company could make some significant savings.
Over the past year the average profits of consultants was found to be approx £34,000, meaning a self assessment Tax and National Insurance bill of approx £7,800! Not forgetting paying 50% in advance for the next tax year.
If a consultant was set up as a limited company the saving of TAX and NI is approximately £2,400 and there is no requirement to pay in advance.
Setting up as a limited company is very simple, using an accountant, agent or direct to companies house.
My advice is to use an accountant to prepare the limited company accounts and tax return.
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