I thought that would get your attention, but I'm not asking which to go for as I know that's been done to death on these forums. I thought I'd post some figures. I did a search but couldn't find a post I'd seen in the past that said what % of money billed you could expect to keep with a limited company vs. umbrella.
So, here's the percentages of what I billed (not including VAT) that ended up in my bank account for the last three months using Parasol as an umbrella company.
March - 68% (this included an expense claim for over £800)
April - 62% (including approx £300 expenses)
May - 63% (including approx £300 expenses)
As I said above, I couldn't find the original post I'd seen saying what percentage of your earnings you could expect to keep with a limited but I seem to recall it was over 70% generally, so I'd be glad if someone could reply to this with some figures.
As someone who hasn't contracted in nearly 10 years, I went with Parasol because I wasn't sure if I'd escape IR35, I needed to get something in place pretty quickly, and I didn't feel confident that the contract would last long, so it seemed like a decent bet at the time. However I wasn't really happy with them pretty much from the off, from misquoted figures for the cost of their service, poor responsiveness to questions, to charging 10% as a "deposit" for the privilege of expensing my own laptop, which I understand the reasons for now, but is avoidable with a ltd company.
So I'm kind of looking for an excuse to move to ltd. and if anyone can give me an idea of how these figures stack up, I'd appreciate it. One other thing to mention is that I am hoping to get a mortgage within the next three months or so - I haven't dug around on here for mortgage info but any heads up would be much appreciated.
Many thanks,
Russ.
So, here's the percentages of what I billed (not including VAT) that ended up in my bank account for the last three months using Parasol as an umbrella company.
March - 68% (this included an expense claim for over £800)
April - 62% (including approx £300 expenses)
May - 63% (including approx £300 expenses)
As I said above, I couldn't find the original post I'd seen saying what percentage of your earnings you could expect to keep with a limited but I seem to recall it was over 70% generally, so I'd be glad if someone could reply to this with some figures.
As someone who hasn't contracted in nearly 10 years, I went with Parasol because I wasn't sure if I'd escape IR35, I needed to get something in place pretty quickly, and I didn't feel confident that the contract would last long, so it seemed like a decent bet at the time. However I wasn't really happy with them pretty much from the off, from misquoted figures for the cost of their service, poor responsiveness to questions, to charging 10% as a "deposit" for the privilege of expensing my own laptop, which I understand the reasons for now, but is avoidable with a ltd company.
So I'm kind of looking for an excuse to move to ltd. and if anyone can give me an idea of how these figures stack up, I'd appreciate it. One other thing to mention is that I am hoping to get a mortgage within the next three months or so - I haven't dug around on here for mortgage info but any heads up would be much appreciated.
Many thanks,
Russ.
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