Author: Gabriel Santos

There’s a moment every contractor has when they land their first proper client contract, the invoice is sent, and the payment hits their shiny new business bank account. It feels amazing. But then comes the next thought, how do I actually get this money out of the company and into my personal account… without getting destroyed by tax? When I started ContractorPal Ltd, I made the classic newbie mistake, I figured I’d just pay myself whatever I needed and sort out the details later. What I didn’t realise was that paying yourself tax-efficiently is one of the biggest differences between…

If you’ve ever left your Self Assessment until the last minute, you’re not alone. I’ve been there, it’s New Year’s Day, your mates are recovering from the night before, and you’re staring at a spreadsheet wondering where half your invoices have gone. That creeping anxiety? That’s HMRC slowly catching up. The thing is, it doesn’t have to be that way. Filing your Self Assessment isn’t hard once you know what to expect. What makes it a nightmare is procrastination, confusion, and ignoring it until it becomes urgent. Worse still, if you don’t get it sorted on time or make mistakes…

When I first heard the term P11D, I thought it was something serious, like a penalty or a tax audit. Turns out, it’s just a form. A fairly important form, sure, but still just a form. And like a lot of HMRC paperwork, once you understand what it’s for and how it works, it stops being intimidating. So if you’re a limited company director, and you’ve been wondering whether you need to file a P11D, this article is for you. I’ll walk you through exactly what it is, when you need one, what counts as a benefit, and how to…

When I first started my limited company, I thought invoicing was the easy bit. Just slap together a Word doc, list what you did, and email it to the client, right? Wrong. It didn’t take long to realise that getting paid on time has everything to do with how you invoice. One vague line, one missing detail, or an awkward-looking document, and suddenly your client is “waiting for finance to approve it.” I’ve learned, sometimes the hard way, that invoicing isn’t just admin. It’s a key part of your brand, your legal responsibilities, and your cash flow strategy. Whether you’re…

If you’re running a limited company like I am, and you’re using dividends as a key part of your income strategy, you’ve probably had this on your radar for a while: the dividend allowance is being slashed again in the 2025/26 tax year. Yep, the government’s been tightening the screws on small business owners and contractors, and this latest move makes it even more important to plan how you pay yourself. When I started contracting, dividends were the golden goose, lower tax, flexible payments, and a lot less admin than salary. But each year, it feels like the benefits are…

When I first decided to go solo and start contracting, I had no idea what was really involved in setting up a limited company. I knew it was supposed to be more tax-efficient, and everyone I spoke to said it was the “professional” way to go. But beyond that? I was flying blind. Now, several years into running my own business (ContractorPal.co.uk), I’ve learned firsthand what the real costs are, both upfront and ongoing. And believe me, the £12 fee you see on Companies House? That’s just the tip of the iceberg. This guide is my no-holds-barred, real-world walkthrough of…