Umbrella vs. Limited
What are the key differences?
- The company acts as your employer
- Little involvement in administration
- Submit timesheets to get paid
- Deducts and pays tax on your behalf
- Higher take-home pay compared to PAYE
- Higher earning potential
- You run your own business
- The admin responsibility is yours
- You’re responsible for paying taxes
- Manage company bank accounts and invoices
Is an umbrella company for you?
- You don’t want the hassle of administration
- You’re likely to have a rate of less than £15 per hour
- Your contracts will usually be less than six months
Is a limited company for you?
- You’re happy to take on the admin responsibility
- You’re likely to have a rate of more than £15 per hour
- You will accept contracts of six months or more
For advice and guidance on how you can best set up a limited company, visit our website or get hold of one of our contractor accounting experts on 080 8141 1643. Alternatively, fill in this form and we’ll get back to you.