Success story
Accountants For Contractors: Ditch The LTD, Keep £1,600
Reading time: ~3 minutes
From Limited To Liberated
She was a self-reliant security contractor travelling across the UK, working long shifts and managing her schedule independently. Like many in her position, she relied on family advice when starting out and was told that setting up a limited company was “the proper way” to trade.
When A Limited Company Doesn’t Add Value
In reality, she had no staff, no credit purchases, and there was no tax advantage at her income level. Instead of keeping things simple, the limited company only added extra work and costs. She was on track to pay more than £1,000 each year for company accounts, payroll, tax returns, and confirmation statements, when a single self-assessment tax return would have done the job.
£1,000 Fees, Zero Benefit
The company structure created unnecessary costs and administrative work but delivered no real benefit. She needed clarity rather than complexity. “I just wanted to get paid, pay the right tax, and get on with my life,” she told us. By reviewing her situation and laying out the numbers in plain English, we showed her there was a better way forward.
Close A Limited Company, Simply
Our advice was simple: close the limited company that wasn’t serving her, complete final filings, and register for self-assessment. We managed the Companies House closure and HMRC wrap-up so she could focus on her work, not paperwork. The result? She saved about £800 each year in accountancy fees and reduced her admin workload.
Three Steps, Big Savings
- Final company accounts and filings completed.
- Company closed and records tidied up.
- Self-assessment tax return set up for one easy submission each year.
In two years, she saved £1,600 that she would have otherwise spent. Her to-do list shrank from multiple deadlines to just one.
Accountants For Contractors in the UK
Although she often worked across the country, our support was fully remote, ensuring everything moved quickly and stress-free. She has since transitioned into full-time employment in a different field but knows we’re here for her whenever she needs assistance. We are the trusted, approachable partner who simplified her finances and reduced costs.
What changed? Less complexity, more confidence, and money back in her pocket. If you’re a contractor or consultant questioning whether your setup is right, reach out for a sanity check. Whether you need to close a limited company, file a self-assessment tax return, or seek clear advice, SCCS Accountants can help anywhere in the UK.
Enjoy a free first consultation, UK wide. Speak to SCCS — expert, friendly accountants for contractors.
FAQs on Limited Companies and Self-Assessment
What are the benefits of closing a limited company?
Closing a limited company can reduce unnecessary costs and administrative burdens. It simplifies your financial situation, allowing you to focus on your work rather than paperwork, and can lead to significant savings in accountancy fees.
How do I transition from a limited company to self-assessment?
Transitioning involves closing your limited company, completing final filings with Companies House, and registering for self-assessment with HMRC. This allows you to manage your taxes with a single, straightforward tax return each year.
When should I consider closing my limited company?
Consider closing your limited company if you have no staff, minimal expenses, or if the company structure is no longer beneficial for your income level. If the administrative workload outweighs the benefits, self-assessment may be a better option.