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Becoming a Limited Company Director

Published: 26 June 2017

If you’ve been a building contractor or subcontractor for a while and you feel like you’re ready to take the next step in your career, going limited is a great option. Our guide explains how going limited and working as a limited company director can help you take home more pay.

Should I become a limited company director?

Becoming a limited company director could be a great choice if you have plans to expand your business, have frequent expenses, and plan on contracting for a long time.

Benefits of working as a limited company director

There are many benefits to working as a limited company director. There may be a little more paperwork than you’re used to, but the benefits make this worthwhile:

  • Ability to grow your business: as a limited company director, you have more opportunities to grow your business. You can also hire employees.
  • Ability to claim more expenses: you’re likely to be used to claiming several expenses if you work under the Construction Industry Scheme. However, as a limited company director, there will be an increase in things that you can claim as a business expense. For example, you can claim the costs of marketing and advertising your business.
  • Improve your tax efficiency: As a limited company director, you can pay yourself a combination of salary and dividends. As dividends are taxed at a lower rate, this is often considered the most tax-efficient way of working.

How to become a limited company director

Becoming a limited company director couldn’t be simpler. Once you’ve decided on a name for your new company, simply follow the application process on the Companies House website.

Once your company is formed, you will receive a certificate of incorporation to prove the company legally exists.

Speak to an expert

When it comes to making a decision on forming a limited company, why not speak to us? We’ll run through your situation and give you the best advice.

Need help?

We look after limited companies, sole traders, freelancers, contractors and CIS workers.

Ready to get started?