Hi,
I've been offered a 3-month contract at £150/day outside IR35.
I've been given the choice of using a Ltd company or going through an umbrella company.
I've run an online calculator to see what the difference would be and it seems minimal ..
I called an accountancy firm and they said basically the same thing, it's financially not worth going Ltd company unless you are earning £50-60k gross
If the client are liable for their own NI contributions anyway, is there any benefit to going down the Ltd company route?
I've been offered a 3-month contract at £150/day outside IR35.
I've been given the choice of using a Ltd company or going through an umbrella company.
I've run an online calculator to see what the difference would be and it seems minimal ..
- Your current net monthly income after taxes is £2,247.
- If you are assessed as a deemed employee ("inside IR35") then your earnings are treated as employment income (i.e. like a salary).
- Your monthly net income then decreases £41 (1.86%) to £2,205. This assumes that the client/agency are paying their own employment taxes, and not passing them onto you.
I called an accountancy firm and they said basically the same thing, it's financially not worth going Ltd company unless you are earning £50-60k gross
If the client are liable for their own NI contributions anyway, is there any benefit to going down the Ltd company route?
Comment