A limited company is a separate legal entity, for which you become both an owner and an employee. Your company charges fees to your clients for services provided, and in turn pays you via a combination of salary and dividends. PAYE must be paid on salaries, and the company may meet any other expenses that relate to the operation of the company. The company must have its own bank account to keep company expenditure separate from personal expenditurA limited company is a company where the liability of the shareholders is limited to what they have invested in, or guaranteed to, the company.
A limited company has a separate legal entity from that of the shareholders, and small companies owned by one or two individuals who offer professional services through their own company are often referred to as personal service companies.
Temporary workers work through different trading structures according to the type of work that they do. These include (but are not limited to):
- Limited company
- Sole trader
- Payroll umbrella company
It is important that you choose the best working options for your needs, and Competex can advise on this.