Umbrella or Ltd - Which one is right for you?
Carrington Accountancy offers completely unbiased advice to contractors who may need to set up and run a limited or who may need to work through an Umbrella Company. Carrington Accountancy provide expert services tailored around the client's individual business needs and their personal aspirations.
- Ideal for short term contractors
- You are free to join and leave us, no tie ins or notice periods
- No initial set up costs
- Very little paperwork - ideal for time restrained or disorganised people
- Fully HMRC compliant - No IR35 concerns
- You use your own personal bank account
- Ideal if earning within the basic rate of tax
- Claim legitimate expenses to offset against tax
- No need to worry about taking out insurance, all provided as part of the weekly fee
- Ideal if in between permanent jobs and looking for a simple solution
- We invoice your agency and pay your tax to HMRC for you, you don't have to raise a finger!
Facts about
Umbrella Contracting
vs.
Facts about
Limited Company Contracting
- Can structure your income more tax efficiently that an Umbrella contractor
- Better suited to those intending to contract for 10 months or more
- Ideal for those earning in the higher rate of tax
- You will need to register a company with Companies House
- You will need to pay for the services of a reliable accountant to file VAT returns, PAYE returns and Corporation Tax (CT600) on your behalf
- You must open a business bank account (Carrington can help you do this)
- Raise your own invoices and pay your own taxes
- MSC (Managed Service Company) is not a concern as you manage your own affairs
- You must always consider IR35 legislation
- At the start of each new contract, always have an IR35 contract review done (Carrington offers this service)
- No. of claimable expenses will generally be more than an Umbrella Contractor
- Able to buy a Christmas Turkey and hold a Christmas company function as a business expense!
Need personal advice about setting up your own limited company? It's our specialty! Find out more at http://www.carringtonaccountancy.com/limited-company



