• P GBP GB, 5 years ago

    It's necessary in some cases, but advisable in almost all.

    If you want to work through any recruitment agencies, they normally require you to be a limited company, and often the larger design agencies would do too.

    Regardless of that though, if you're freelancing/contracting full time and you're self employed, you're giving HMRC a lot more money than you need to be. For the most tax efficient was of getting yourself paid, you need to be a limited company. If you're earning over about £30k a year and are self employed, you're likely to be losing out on a fair bit of take home pay.

    I wrote some words about this subject for everyday designer a while back, but it still applies now. http://everydaydesigner.net/freelancing/the-financial-side-of-freelancing

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