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Benefits of working Ltd

UMBRELLA 
vs LIMITED

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

What's the
Difference?

Umbrella

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.

Limited

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

A guide to Going Ltd. Download this popular guide today and see how benefitial setting up a Ltd Company can be.

Going Limited

Get in touch today

Contact Us

If you want to go Limited, or simply have a questions about the differences between Ltd and Umbrella, please feel free to complete the form below and a member of our in-house team will be in touch directly. Any information you supply is protected. For more information please read our Privacy Policy.