Limited company contractors have been excluded from the Self-Employed Income Support Scheme (SEISS), announced by Chancellor of the Exchequer Rishi Sunak this afternoon to help the self-employed navigate their way through the coronavirus pandemic.
What is a limited company in construction?
A limited company is an organisation that is referred to by law as a ‘moral person’. This means that the company has its own identity, is entirely separate from its owner and does business under its own name.
Can you have more than 1 Ltd company?
Yes, it is possible to run two or more separate businesses under a single limited company. This involves the use of trading names to compartmentalise the overall company into separate units, each of which can be run as a unique business.
Can a contractor be a director of a limited company?
Most contractors work via their own limited companies. Aside from the tax benefits this structure offers its shareholders, the liability of directors is also limited. There are a number of legal and statutory obligations associated with being a company directory, however much of this burden can be easily absorbed by a specialist accountant.
How can contractors close down their limited companies?
Assuming the contractor has no further need of their limited company, they can apply to Companies House for the company to be ‘struck-off’ the register, which means the company will cease to exist.
What should be the name of a limited company?
The name can be anything, but once incorporated (registered with Companies House), you must include the term ‘Limited’ or ‘Ltd’ at the end (e.g. Mr. Contractor Ltd). Most contractors keep their company names simple by using their name or initials, house name or even pet name.
Do you need a contract with your limited company?
Therefore, there is no legal requirement for a contract of employment to exist between a limited company and its sole director if the sole director’s functions are just to comply with the statutory duties as an officer.
