Are Limited Companies the right commercial vehicle for GP contracts?

Limited liability companies are useful but are not always the correct way to run a business. They bring protection through reducing an individual’s exposure to personal financial risk should a business fail. They are often perceived as being a good way of reducing tax but recent changes in taxation mean that in reality there is very little difference in the overall tax paid through operating via a company route when compared with a partnership. In some scenario’s you can end up paying more to HMRC by trading through a company.