As a limited company contractor you will invoice the agency or client and the funds will be paid into your business bank account. It is important to understand how that translates into money in your pocket.
Typically you will make three, separate, monthly payments from your business bank account to your personal bank account.
We will discuss and agree a salary that you will be paid from your limited company and advise on the monthly amount to be transferred from the business bank account to your personal bank account.
Dividends are likely to form the main source of income from your limited company. Dividends are paid out of the after tax profits of the company. Like salary, they are paid by making a payment from the business bank account to your personal account.
It is likely that you will have incurred some business expenses personally. Each month you can reimburse those expenses by making a transfer from the business bank account to your personal bank account.
All of the above will be explained to you by one of our expert accountants.