Running your own limited company can save £1,000′s of pounds each year in tax. So why do so many people still opt to work under an umbrella?

As well as extra money, there are other benefits of contracting.

Running your own limited company can offer more scope for tax planning than is the case when operating as a sole trader.

One of the ways of running your ltd Company tax efficiently is by claiming all allowable expenses. Knowing what you can reclaim (and what you cannot) will help reduce your tax bill, and prevent unwanted attention from HMRC.

It can provide peace of mind and compensation should things go wrong during the contract.