If you are new to contracting or freelancing, choosing between working through an umbrella company or setting up a limited company can be difficult. Below, you will find some of the advantages and disadvantages of each of them, so you can figure out what will work best for you.
An umbrella company is suitable for contractors and freelancers in any industry on any contract length, whether it’s IT, nursing, graphic design, or construction. You will find contractors typically use umbrella companies if they are on short-term jobs if they are a first-time contractor or working inside IR35.
If you would like to speak to our specialist team to find out how Unique Payroll can help you. You can contact us on 01473 461 028 or by visiting https://uniquepayroll.co.uk/
If you’re working outside of IR35, setting up your own limited company is your most tax-efficient option. You will become a shareholder and the director of your own company and be able to pay yourself with a combination of salary and dividends.
Our accounting partners, An Accounting Gem, have helped countless contractors and freelancers set up and then run their own limited companies. If this is the route you think will work best for you, they can be with you every step of the way. To find out more, give them a call on 01473 744 700.
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