Umbrella vs Limited company
If you are considering taking a contract role for the first time, then your recruitment agency will almost certainly have told you that you need to work via an umbrella company or by setting up your own limited company. It may sound daunting at first if you’ve never worked for yourself so here’s some guidance which may help you make your decision.
- Why not self-employed?
- Income and expenses
- Limited company
- Are you planning on contracting long term?
- Umbrella company
- Fees (margins)
The choice is yours
It is important to get advice and guidance on what will work best for you and we would always recommend speaking to a company that is able to offer you both options.
Typically the difference between the rate of return you will receive from a limited company will be around 10% higher than the return from an umbrella company but both have pros and cons.
The One Click Group provide both umbrella and limited company accountancy services and would be happy to answer any questions you may have.
Contact us for more info