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Looking for umbrella accounting services?

Joining an umbrella company is a great way for inexperienced or short-term contractors to cut down on tax and general business admin. However, it is not as tax efficient as setting up a limited company.

Many contractors looking to join an umbrella company could be just as well, if not better, served by setting up a limited company.

Umbrella vs. Limited
What are the key differences?

Umbrella company

  • 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

Limited company

  • 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
 

 

Ask yourself:

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, 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:

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