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More Pay, Less Risk

Software Engineer
Current Employee
Has worked at Amazon for 1 year
December 4, 2016
Bengaluru, Karnataka
4.0
RecommendsPositive OutlookApproves of CEO
Pros

Credibility – clients view a Limited Company in a more positive light.

Higher take-home pay – being paid in regular dividends means you pay less tax and take home more money.

Lower personal risk – you are protected from the threat of personal financial loss due to the separation between you and the company.

Better tax planning – you can benefit from tax savings thanks to the various tax planning opportunities available to you.

Cons

Costly if contracting for a short period of time. Can be costly if you have a short-term contract (anything less than a couple of months, but it does depend on your daily contract amount) then decide to go back to permanent employment, as you will still be required to submit end-of-year accounts.

Advice to Management

Whatever the size of the organisation you work in, whatever you do, your employees are your most valuable asset. If you are a director, line manager, supervisor, team leader, or head of department, the way you manage can have an important impact on the health and wellbeing of your employees, how well they do their job, and how well your organisation performs.

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