Advice needed guys.

[Wanderer]

After 3 years and many posts on CU I'm still to see a fully fleshed out example of what the advantages of running a limited company are over being with an umbrella company. Lots of people spit at the thought of it on these boards - but never seem to back up that vitriol with any financial evidence.

There are massive savings to be made with a LTD. You can take dividends and avoid Employer's NI, plus Employee's NI and you can make money from the VAT FRS (5% of your turnover). With a non working spouse you can split the income with them and stay under the 40% tax bracket (if you are a high earner).

On the minus side, there is IR35 but if you get caught then you just have to pay the difference in tax you saved, if you don't get caught then you get to keep the tax. I'll take that gamble. There is more admin but the amount of extra cash you get by having a LTD may make it worthwhile.

As for financial evidence, there are lots of calculators on the web. Go and use one and see for yourself. I don't think anyone is going to try and convince you of the obvious.

If you don't believe us or you just want a quiet life then that's cool. Just stick with your umbrella.

[Wanderer]

After 3 years and many posts on CU I'm still to see a fully fleshed out example of what the advantages of running a limited company are over being with an umbrella company. If you are going to diss using umbrella companies, at least be big enough to provide working finance examples - otherwise I'm afraid you just look like a dick.

I saw this example and thought of you.

I don't know how much you charge but this is for someone earning about 300/day. For a contractor earning ~150/day or contracting for < 6 months then it's probably not worth while.