This blog will briefly discuss the benefits of working with us via your own limited company or an umbrella company. If you would like to read more about IR35 and what this means please follow this link.
Limited company option
The benefits of operating as your own limited company are mainly monetary based, providing you are operating outside of IR35.
Benefits:
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Tax benefits including access to the flat rate vat scheme
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National insurance – compared to the umbrella option you pay around a tenth when setting up a limited company
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Complete control of your financial affairs
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Ideal for high paying contracts
Disadvantages:
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As director of your limited company are required to pay for and provide business insurances to cover your limited company.
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You have to open a limited company bank account
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As director of the company you must provide paperwork and submit tax documents on a regular basis.
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Higher level of liability and responsibility
Umbrella employee option
Once you sign up with an Umbrella company you become an employee of that company and as such can take advantage of certain benefits.
Benefits:
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Access to pension, holiday and maternity/paternity pay
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Consistent employment record
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All tax and NI is deducted, no further tax to pay
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Less paperwork and responsibility
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No need to worry about IR35
Disadvantages:
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Umbrella companies charge you a fee for this service, which can vary and is more costly than running your own limited company
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You are effectively operating as a permanent employee
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On average you will take home 60-65% compared to 75-80% when operating through a limited company
