Aston Mae

[LisaContractorUmbrella]

Hi,
One thing that you really need to take into account if you use an umbrella company: The extra tax that you will end up paying in NICs and PAYE taxes would have been your war chest.

If you are inside IR35 there is very little difference in take home between Ltd and brolly

[eek]

If you are inside IR35 there is very little difference in take home between Ltd and brolly

Well there are umbrella fees which would probably cover your accountancy costs.

But there is one thing people forget. Provided not its only the occassional inside IR35 contract you can use that cash as that years pension contribution (so you won't pay tax on any of it).

[kal]

Well there are umbrella fees which would probably cover your accountancy costs.

But there is one thing people forget. Provided not its only the occassional inside IR35 contract you can use that cash as that years pension contribution (so you won't pay tax on any of it).

Indeed not to mention benefits like the flat rate VAT, 5% expenses etc. I would say its nearly always better to go Ltd, if nothing else its one less link in the chain holding onto your invoice money before you get it!

[Sockpuppet]

Indeed not to mention benefits like the flat rate VAT, 5% expenses etc. I would say its nearly always better to go Ltd, if nothing else its one less link in the chain holding onto your invoice money before you get it!

While I agree with you for the hassle I think brolly has to win. You can walk away at any time, you just can't do that with a Ltd.

If i was inside IR35 I'd probably go brolly.