Benefits of working Ltd
Contract work often requires professionals to operate self-employed as opposed to working PAYE, and we want you to be confident in whichever way you choose to operate. Working via an Umbrella is an option available to contractors as opposed to setting up a Ltd Company, so let’s take a look at the differences in Umbrella vs Limited.
Review your Options
Operating via an umbrella is a popular method of working, historically for short-term, low income contracts. Using an umbrella means that the individual is not subject to the IR35 legislation and does not have to consider many of the duties and responsibilities of running a Ltd Company whilst still being able to perform contract work.
As a result of tax changes from April 2016 however, operating via an umbrella company now means that expenses relating to travel and subsistence cannot be claimed back as a legitimate business expense.
Whilst using an umbrella company takes away much of the administration of running a company and the worries of IR35, operating through a limited company is the most cost-effective and tax-efficient way of working, and with QAccounting at your side, is arguably just as easy as working through an umbrella company.
For longer-term, higher rate contracts, it is more beneficial to trade as a limited company. Not only will there be significant tax savings, but you also have a higher level of control over your finances.
Find out how easy going Ltd can be
GOING LTD GUIDE
Get in touch today