Umbrella or Private Accountant?

mobad

I am currently a contracter and every week I get allot of my salary (around 1/3 of my sallary) taxed.

What would be the best option to limit this?

RacyRed

That is an unanserable question based on the information you have provided. What do you mean by "umbrella" exactly, are you thinking of forming an Ltd?

By "every week I get allot of my salary (around 1/3 of my sallary) taxed." Do you mean that 1/3rd of your income is deducted in tax and NI? That sounds fairly normal.

Whichever way you do it, you will be paying Tax and NI.

SteProud

mobad wrote: »

I am currently a contracter and every week I get allot of my salary (around 1/3 of my sallary) taxed.

What would be the best option to limit this?

I work for both an umbrella and a contractor accountant. Its difficult to give you an accurate answer without more info but I can point you towards some independent calculators if that would be of use to you?

In general though, we advise our contractors that if you are turning over at least £30 to £35K a year, you are usually better off going down the limited route.

IR35 can have a real impact here though. Do you know your current IR35 status?

There are also a few extra responsibilities that come with running your own limited company that you need to be aware of. I can list them here if that would help?