Have you been working as an umbrella contractor for a while now? Have your rates increased over that time? If so it might be time to reassess your situation.
Working as an umbrella contractor has many benefits and suits a lot of people because there is very little administration involved and with a reputable umbrella, contractors can be confident they are compliant.
Working as an umbrella employee can be a great way to make the transition from a more traditional, permanent role with one employer to a more flexible approach to working on different temporary contracts whilst retaining many of the benefits of being an employee. However for some contractors, in particular those who are well established with a regular flow of work and higher rates of pay, it might be the right time to consider setting up a limited company.
Once you earn above a threshold of approximately £25,000 you are likely to be financially better off running a limited company because of the tax benefits involved.
Of course there are other factors to consider as well as the most tax efficient approach and some people are concerned about the administration involved but with the right accountancy service on board it doesn’t have to be difficult or time consuming.
If you think that limited might be the right approach for you or you’d like to discuss your situation and your options with an expert who understands the tax implications then get in touch. If you do decide to set up a limited company then our sister company Exchequer Accountancy Services can help and support you throughout the process.
