How we structured a Forest Hill freelancer's move to a company, £6,400 saving
Client M is a Forest Hill freelance UX designer whose income had grown past £62,000 working for agency and direct clients. She was operating as a sole trader, paying higher-rate income tax plus Class 4 NIC, and hadn't considered whether a company would save tax or how to make tax-efficient pension provision.
We modelled sole trader versus Ltd company for her profit and client base, and recommended incorporation. We set up the company, structured her remuneration as salary at the NIC-optimal level plus dividends, set up an employer pension contribution as a tax-efficient extraction, and ensured all her expenses (equipment, software, home studio, professional development, travel) were captured.