If you are considering setting up your own company to work as an IT Contractor in the science sector, you may wish to consider a number of different arrangements however by one of the most popular arrangements we have seen in the current market is that of setting up a limited company. The term ‘limited’ derives from the fact that the company’s finances are separate from the personal finances of the companies owners.

This also means that the shareholders in a limited company are not responsible for the companies debts, although directors may be required to guarantee loans or credit granted to the company if they are required.

Some important things to consider when setting up your limited company are that:

• Your company must be registered at Companies House
• Annual accounts must be filed at Companies House
• An Annual Return must be completed each year to update Companies House with basic details relating to the company
• The HMRC must be informed if the company of the companies profits or taxable income in a Company year
• The company must complete an annual HMRC corporation tax return and pay the due taxes
• Anyone employed by the company must pay income tax and national insurance on their income

If you are considering setting up your own limited company your accountant will be able to help you. There are also numerous websites that can be quickly found with a simple search on the web that will enable you to set up your company within minutes for as little as £24.99.