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Limited Company

How does a Limited Company Work?

We will advise you on the most cost effective and tax efficient way of managing your money through your limited company. In a nutshell, the money you access through your limited company comes in two streams:

  1. Salary - You pay yourself as an employee of your limited company using the standard PAYE (Pay As You Earn) and NIC (National Insurance Contributions) model
  2. Dividends - You pay yourself a dividend as a Director of your limited company

The simple process flow below illustrates how deductions are made for each of the payment avenues. We will advise you on how best to manage your fiscal split to allow opportunity for growth, long term financial stability as well as maximizing your take home pay.

contractor limited company revenue flow