UMBRELLA ACCOUNTANTS IS THE OBVIOUS CHOICE FOR CONTRACTORS WHO WANT TO MAXIMISE THEIR INCOME WITH SIMPLE, LOW COST, FIXED FEE ACCOUNTANCY SOLUTIONS

Benefits of a Limited Company

With a little extra paperwork and forward planning, the limited company option could significantly boost your take home pay

Working through a limited company has some significant benefits over umbrella contracting and other types of self-employment. 

  • Limited company contracting can be more tax efficient than working through an umbrella company. Limited company contractors can take a proportion of their take home pay through dividends, which are subject to lower levels of taxation than income.
  • The VAT Flat Rate scheme makes life simpler and more tax efficient for some limited company contractors. Get in touch to find out if you can benefit from this scheme.
  • Setting up a limited company and finishing your company name with the letters ltd can help project a more professional image of your services. As well as reinforcing your brand, it can also benefit you if you have other business interests or need to employ staff.
  • Limited liability means that you cannot be held personally responsible for any company debts if your business fails. One important exception is if you personally guarantee finance for the company.
  • You can keep complete control of your financial affairs
  • You can grow your business, attract investors and plan your taxes more efficiently by creating different share classes in your limited company.
  • Limited companies are legal entities that can be sold or passed on when the time is right.
  • When you have finished contracting, then you may be able to benefit from Entrepreneurs’ Relief - a low rate of capital gains tax which is applied to business assets in some circumstances.

Clearly there many advantages to limited company contracting, but this model of working isn’t the best solution in all circumstances. There are some important things that you need to think about before you go down the limited company route.

Important things to consider

  • Setting-up and running a limited company comes with new responsibilities and it may not be suitable if you only expect to be contracting for a short time.
  • As the business owner and director, you will have overall responsibility for things like your accounts, insurance policies, making payments and chasing unpaid invoices. Although we strive to assist as much as we can, you will bear the ultimate responsibility for ensuring that the business is compliant with expenses rules, IR35 legislation and other relevant company legislation.
  • As a limited company contractor, it is likely that you will fall outside the Agency Worker Regulations, meaning that you won’t be guaranteed the same legal protections as other workers in a particular workplace.
  • Limited company contractors have to do some extra paperwork. We estimate that a typical contractor will have to put 15-20 minutes aside each week for this kind of administration.
  • Limited company contracting may not be suitable for contractors earning less than £35,000 per year.

 

  • I found working with umbrella easy and they responded well to all my queries quickly and efficiently. I had Sheraz Sheikh as my contact for Tax affairs during the last two years who was very helpful and supportive I found Umbrella a good organisationStephen Cooper May 2022

  • The team over at Umbrella.co.uk - thumbs up. The team over at Umbrella.co.uk, especially Nicola Worthington, have always been very helpful, professional and prompt with communication and queries when I used them to help establish and look after my Limited company.Johnny M March 2022

  • Great service from Nicola Worthington & team. Always prompt with responses and reminders. Very professional.Michael L March 2022

  • After this company was recommended to me I was contacted by Robert Charlton. Robert emailed me all the necessary documents to setup a limited company and gave good advice over the phone. Excellent first impression which led me to sign up. Martin February 2022

  • Nicola Worthington was amazing BBC reported today that "More than three million people have yet to file their self-assessment tax return just days before [the] deadline of 31 January". Despite the pressure, Nicola Worthington completed my self-assessment tax return quickly and professionally. She was very responsive and promptly answered all of my questions. Fantastic work.Marcus January 2022

  • Professional and reliable company in the 5 years of using their service. Thanks to Nicola Worthington for all your support in submitting my self assessments in a timely and accurate fashion.S Moore December 2021

  • Umbrella have been dealing with my account/tax matters for the last 10 years with an extremely profession approach. I have always received accurate information and helpful advice from Nicola Worthington. I would have no hesitation in recommending Umbrella for all accountancy matters.D Sewell November 2021

  • Nicola has been fantastic - kept me informed and very professional.D Norman November 2021

  • Nicola has been fantastic - kept me informed and very professional.Dale Norman October 2021

  • Very helpfull and prompt. Always came back as promised and provided the necessay information and guidanceM manir October 2021