Hello All,
I am new to contracting but have read a lot into it and decided to go the Ltd route but am beginning to question myself as to ‘own business’ Vs Umbrella.
I started the same day as my contractor colleague and we are both on £400 a day. I am doing the ‘own business’ Ltd company route paying myself £672 a month PAYE and Dividends £2,383 a month for tax efficient reasons. I was on more than this take home as a Permie.
The reason I am questioning myself is that my colleague on the same day rate as me is taking home £6400+ a month. We have been at it for two months now and he is now just putting a deposit down on a Porsche 911 while I am scrabbling around on less money than I was earning as a Permie. How on earth is this possible?
I am new to contracting but have read a lot into it and decided to go the Ltd route but am beginning to question myself as to ‘own business’ Vs Umbrella.
I started the same day as my contractor colleague and we are both on £400 a day. I am doing the ‘own business’ Ltd company route paying myself £672 a month PAYE and Dividends £2,383 a month for tax efficient reasons. I was on more than this take home as a Permie.
The reason I am questioning myself is that my colleague on the same day rate as me is taking home £6400+ a month. We have been at it for two months now and he is now just putting a deposit down on a Porsche 911 while I am scrabbling around on less money than I was earning as a Permie. How on earth is this possible?
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