Churchill Knight and Associates Ltd

How long has Churchill Knight & Associates Ltd been advising clients?

Since 1998. We have over 10 years experience in helping our clients take home the highest possible pay.

What service does Churchill Knight & Associates Ltd provide?

Churchill Knight & Associates Ltd specialise in accounting for the freelance and contractor market.

What can your accountancy firm offer freelancers and contractors?

Churchill Knight & Associates Ltd set up 3 types of business options for freelancers and contractors. These include sole trader, limited company accounting, and an umbrella company service.

Is there a best time to set up a limited company / umbrella company or sole trader?

No. Any time is good. If you are not planning on working through your limited company immediately, then it would be better to wait a couple of weeks before your contract starts.

Is there a lot of paperwork?

No, paperwork should take no more than around 30 minutes per month.

How long does it take to set up a limited company / umbrella company / sole trader?

You can set up your limited company within 24 hours by contacting our sales consultants on

.

What is the best option for me – sole trader, limited or umbrella?

The decision is up to you; working through an umbrella company can be simpler than working through your own limited company, however you will take home less money through an umbrella company. As a general rule, if you earn more than £25,000 per year or if you are on a contract for more than 3 months and intend to stay contracting for the foreseeable future, then the limited company route could be best for you.

How do I switch from umbrella to limited?

Switching from umbrella to limited is simple. All you need to do is set up your limited company by calling our sales consultants on

. This will take about 5 minutes of your time. As soon as your company is formed you can stop working via your umbrella company and start trading through your limited company.

What expenses can I claim?

You can claim anything that is wholly, exclusively and necessarily in the performance of duties of your employment by the business. This could include numerous things such as accountancy fees, business travel, postage, insurance, salaries, and employers National Insurance contributions. For a more detailed list of what you can claim, please contact us on

.

How much money will I take home after all deductions?

This will vary from person to person and depends on a variety of factors, from which trading style you decide upon, to your eligible expenses and the choices you make regarding payments to yourself. Our specialist consultants will discuss options with you and advise you on which way of working is most beneficial to you. Please call

or complete our request a calculation form. We offer various options to ensure we increase your tax efficiency and take home pay.

What are dividends?

Dividends are a distribution of your company’s profits (after tax) to the shareholders. You do not have to pay National Insurance on dividend payments and so this is a very tax efficient way of receiving income from your company.

Do you charge set up or close down fees?

No. Setting up your company is completely free of charge and we will also close down your company free of charge if your circumstances change. There are however, fees to transfer sole trader or limited company accounts to another accountant.

How much does Churchill Knight & Associates Ltd charge?

Our charges are based on the business type and the level of service that you require. Please be assured that we will give you honest, free advice. For a quotation, please request a call back or call us on

.

Can I claim back VAT?

Yes, if you choose to be VAT registered there are various options regarding VAT registration. One of our consultants will be able to advise you on your options (but the decision is ultimately yours). If your business turnover is above the VAT threshold for VAT registration, you must register. For further advice, contact one of our consultants on

.

What is IR35?

IR35 dictates the way tax is paid through a limited company. If you work outside of IR35 you can dictate a level of salary. The remaining monies will be either classed as profit or expenses. Once tax is paid on the profit the shareholders can withdraw dividends. This is more tax efficient than working inside IR35 however we strongly recommend that you seek advice from independent tax status advisors, not an accountant.

If you receive advice from an independent tax status advisor that thinks you are inside IR35 and you choose to follow this advice (the decision is ultimately yours) then your salary payments under PAYE will be calculated at 95% of the income your business receives. This basically means that you will receive less money than outside IR35.

If I decide to be paid inside IR35, is there any benefit of trading through my own limited company?

If you decide to be paid inside IR35 you can still:

1. Claim travelling and accommodation expenses when working away from home
2. Benefit from the VAT Flat Rate Scheme which on an average contract will save you around £2000 a year
3. Receive interest on the funds held within your own company.

So yes, from a financial point of view it still could be worth it. Also any other contract work you do can be put through your limited company.

What insurances will I need?

1. Professional Indemnity Insurance. This provides financial protection for your business and is designed to meet defending claims made against your business. This is not a legal requirement.
2. Public Liability Insurance. This protects you against 3rd party claims for injury or damage to people or their property. Both insurances are claimable expenses through your business. This is not a legal requirement.
3. Employers Liability Insurance. This insures the business against its legal liability for loss, damage, injury or disease caused to an employee and arising out of the course of their employment. This is a legal requirement.

We can provide a list of companies that provide this insurance.