We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
I am going on a contract, should I start my own business?
Comments
-
Actual that link shows that LTD is better than Umbrella, subject to assumptions and caveats...
Again I'd suggest you get yourself over to contractor uk forum and read the FAQs.
DYOR.0 -
You need to do the numbers for yourself. There are plenty of online calculators you can use. The link you have shown is for £400 a day. That is a completely different profile to £170 a day as that contract has a larger upper rate tax element whereas your contract may not even go into the upper band depending on costs, time off etc. That changes the cash taken out.
Just my opinion but if it was me then I would go umbrella at £170. I started contracting last year and did my first through an umbrella. Then for my second I did it through LTD. For me it is financially much better as my rate is alot higher. But I also paid £800 in insurance and around £1000 for an accountant. That would be alot of cash out at £170 a day and you still pay those between contracts when you're not billing.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
All the online calculators show approx £400-500 more take home income per month with accountant versus umbrella company.
I am not sure why you suggest me to go with umbrella??0 -
When I posted, I used the calculator in the link you posted. It shows a difference of £2,700. Within that it has assumed an umbrella set up costs you £1,200 per annum which is about double what it should reduce the difference. I also don't see any reference to insurance which you will need as a LTD contractor so tgat would reduce the difference further.
If you think you can get £400-£500 extra a month then go for it.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
All the online calculators show approx £400-500 more take home income per month with accountant versus umbrella company.
I am not sure why you suggest me to go with umbrella??
.... im not sure that this £170 role is going to work out, but 1 thing is for sure; you will not be able to run a ltd company.
Everyone has said that you need to work it out for yourself, including your ability to do it0 -
try looking at https://www.sjdaccountancy.com/about/resources/limited_company_and_umbrella_take_home_pay.html - they have some good guides.
MarkWe’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.9K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards