Umbrella or Ltd Company

[ROSS84]

I'm a UK citizen, currently working in a staff position in Spain with a Spanish company.

In a couple of months time, I will be moving back to contracting. I'm looking for advice on whether an Umbrella company or Ltd company is the best route to go down?

Details are:

• I will work remotely, and continue living in Spain.
• I will work for an Irish company but will be paid by a UK agency in pounds sterling.
• approx. £250 day rate.
• I'm a Spanish tax resident.

[Old Greg]

I'm a UK citizen, currently working in a staff position in Spain with a Spanish company.

In a couple of months time, I will be moving back to contracting. I'm looking for advice on whether an Umbrella company or Ltd company is the best route to go down?

Details are:

• I will work remotely, and continue living in Spain.
• I will work for an Irish company but will be paid by a UK agency in pounds sterling.
• approx. £250 day rate.
• I'm a Spanish tax resident.

Talk to Sue at IPAYE.

[PerfectStorm]

I seem to remember £250ish being the point below which it doesn't make much difference, can't remember how that was calculated though.

[Chart Accountancy]

I'm a UK citizen, currently working in a staff position in Spain with a Spanish company.

In a couple of months time, I will be moving back to contracting. I'm looking for advice on whether an Umbrella company or Ltd company is the best route to go down?

Details are:

• I will work remotely, and continue living in Spain.
• I will work for an Irish company but will be paid by a UK agency in pounds sterling.
• approx. £250 day rate.
• I'm a Spanish tax resident.

If you are based in Spain then the UK LTD company will ordinarily not be a tax resident in the UK if you will be the sole director controlling the company from Spain. HMRC however will not object collecting the tax in the UK but technically you should pay corporation tax in Spain as the company will be considered a tax resident in Spain. The dividends you take will be taxable in Spain if you are not a UK tax resident. Therefore, you could set up a company in Spain to invoice your Irish client if this is a possibility. If however you might be considered inside IR35 from April 2021, you might be forced to be taxed via an Umbrella.