With the contracting sector witnessing consistent growth and demand, the industry is growing month-on-month and there is high demand for specialist talent and expertise.
In line with this consistent growth within the contract recruitment market, we are also seeing more and more clients showing commitment to the industry by incorporating their own Private Limited Company after utilising an Umbrella Company to start their contracting journey.
As discussed in our recent webinar with Lyndsay Kealy, the PLC Manager at Icon Accounting, we discovered that there are numerous benefits and advantages to incorporating their own Private Limited Company and as a result, we are going to examine all the benefits and tax efficiencies one-by-one, ensuring that regardless of your why – you have all the information you need to decide on which solution best fits your needs for now and in to the future.
The below advantages will be discussed and examined in detail:
- Multiple Business Interests or Contracts
- Purchasing Company Assets – Vehicles, Investments & Other
- Tax Efficiency – Reliefs Available & Further Tax Savings
- Hiring Others
In our first feature of this mini-series, we look at the ability to diversify into other business interests or areas and we also take a look at some globally recognised brands that were created as a ‘side-hustle’.
When you decide to incorporate your own Private Limited Company, you are in immediate control of what the company does or what business activity the company partakes in.
From choosing a name right through to the structure of the company and the industries that it operates within.
Many of our clients have started their Private Limited Company with the goal of paying less tax on their Contract role and somewhere along the way to achieving this goal, they come across a separate opportunity or idea that translates into multiple sources of income.
In some instances, a separate legal entity may be a more feasible solution, however, in most cases involving e-commerce, training and advisory work, consultations and/or investments can be routed through the one Private Limited Company.
Diversifying into multiple business interests can be a great way to reduce your tax liability before year-end returns are submitted and returned to CRO. Adding additional sources of income is also a great way to alleviate risk levels associated with your employment.
Thankfully, throughout the COVID-19 pandemic, we have very few projects being cancelled, but this is not always the case – having a back-up plan or second income could provide very worthwhile.
As a client of Icon Accounting, you have automatic access to iPerks, our exclusive learning, savings, and bespoke wellness platform. The most popular feature of iPerks to date and understandably so has been the opportunity to up-skill and learn whilst contracting.
It has never been easier to up-skill, with the vast majority of education institutions investing heavily into e-education facilities.
Moreover, 99% of the courses on iPerks offer flexible learning and also offer multiple languages.
If you feel like you need some more inspiration on starting your ‘side-hustle’, look no further.
Amazon, Ebay, Groupon, Udemy, Etsy, Hubspot and even Instagram have more than Worldwide recognition in common.
At their infancy, these companies too were a side-hustle or a diversification into additional sources of income achieved by a self-employed individual. It goes without saying that their combined value would make you question whether you could find an additional hour per day within your schedule. You can even check out our top 4 tech courses that our clients have taken advantage of to date through iPerks.
If you would like to discuss contracting through a Private Limited Company in more detail or maybe you have a business idea that you think may be suitable as a secondary source of income? If so, please reach out to your dedicated account manager who will ensure that you get the advice and information you need to consider before deciding.
Alternatively, if you are not a client of Icon Accounting, please feel free to reach out to the team directly on 01-8077106 or email email@example.com and our team will be delighted to assist you.