IT contractors really need to think about their long-term career strategy before they start their own limited company to trade through, it is claimed.

Contracting through a limited company can offer many benefits and be tax-efficient even over the period of just one contract, according to Contractor Calculator.

However, IT contractors need to consider their personal circumstances and whether the move will affect their IR35 status, or if they have a spouse or partner with unused personal allowance.

The website advises that the only way to be sure whether a limited company will be beneficial is to have the contract itself checked by an expert.

"Should the contract be judged to have a high risk of being found inside IR35, it is unlikely that a limited company would be a tax-efficient trading option for a single, short-term contract," the site notes.

Kate Cottrell of Bauer and Cottrell recently joined the Office for Tax Simplification, to represent the views of contractors during the review of IR35 tax legislation.