Contract via own business or umbrella company?

getmore4less

happyandcontented wrote: »

Sorry, but I don't think that advice is correct. The more money you expect to be paid the better it would be to become a Ltd company rather than use an umbrella company. That is current advice from our Accountants.

The real difference is NI and expenses(limited if just one contract) tax is very similar.

For full time(full year) accounts cost similar to umbrella margin.

Ltd is nearly always better unless you find one that is very cheap..

for short term where you might not stay contracting umbrella has a place if they won't just do PAYE on an equivalent rate.

podperson

Are they just asking him to work on a freelance basis or are they insisting that he is paid through a limited company? I do contract and freelance work but I am registered self-employed as a sole-trader. No limited company therefore no accountant/set-up fees required.

If they do insist on a limited company then for the amount he's earning he would be better using an umbrella company.

isplumm

try looking at https://www.sjdaccountancy.com/ - they have guides about contracting - for example https://www.sjdaccountancy.com/about/ourservices/ltd_vs_umbrella.html

Thanks Mark