For good reasons, the majority of contractors choose to operate through their own limited companies.

The tax advantages and flexibility of working through a limited company are well established and greater than any other compliant method. Whilst there are other trading options widely advertised, these rarely prove to be either as tax efficient and/or compliant with tax laws. You would be wise to be particularly wary of the dubious, complex tax avoidance schemes that attempt to distribute a contractor’s income in the form of tax free loans or manufacture artificial paper losses to mitigate a contractor’s tax liabilities. Any scheme promising take home pay exceeding 85% of gross contract income must be regarded with extreme caution.