The Advantages to Becoming a Limited Company Nurse

According to the RCN, as of March 2020, Britain faces a 40,000 nursing deficit in all permanent positions. Locum nurses are helping fill the gaps in the NHS hospitals and General Practices but this is still not enough. There has never been a better time to be a limited company nurse, you can have the work-life balance you desire, work in the locations you want, take time off when you need and with being a limited company you can acquire the optimum rate possible with the current high demand for nurses outside of IR35.

There are many benefits to becoming a limited company nurse, we have highlighted the main ones below.

Why Choose Limited over PAYE?

The Simplicity – It is so easy to set yourself up as a limited company and takes very little time. You will need to choose a company name and register it with Companies House which has a £12 charge if you register online.

Higher Take Home Pay – Working through your own limited company is the most tax-efficient option. Provided you are outside IR35, your take home pay will be higher than choosing to work through an umbrella company. To find out more about how IR35 might affect you, read our article here.

Tax Efficient – As a limited company nurse you will pay corporation tax at 18% which is lower than income tax. Also, as a business you get paid a salary and dividends, you can choose the most tax efficient mix of the two to make the most of the money you earn.

Pension Benefits – Companies are able to make higher tax relievable pension contributions compared to an individual and are usually a tax-deductible expense for the company.

Claim on Your Expenses – Anything that is solely classed as a business cost can be claimed back on expenses. Trading through a Limited company means you can claim on a wider range of expenses such as travel, training courses, phones, equipment etc.

How to register as a limited company

Forming a limited company is far more straightforward than what you think and the process can be completed in the same day if done early enough.

AppLocum recommends Duport as an easier option to going directly through Companies House. All documents are supplied and the process can be completed within 5-10 minutes.

https://www.duport.co.uk/company-formation/limited_companies.php

Once you have a limited company, you will need to link a bank account. It is not required but for less of a headache in the future, it is suggested that you set up a separate bank account for your business to make your accounts more manageable.

If you have any questions about choosing to be paid as a limited company over PAYE then please get in contact with us, we will answer any questions you may have. Contact us today!