Basic question: Umbrella or Ltd

[Jeremiah@RHJAccountants]

This is a not a good thing looking at some of the posts today.....

I agree not a good thing if the contractor does not know how to manage the money and stay with in the law ie not taking out company money (Illegal Dividends) which should be used to pay corporation tax and other HMRC liabilities.

Hence having a good accountant will help the contractor if the advice is professional, good and listened too.

[northernladuk]

+1 Ltd

As a contractor you will have complete control over your company and money

This is a not a good thing looking at some of the posts today.....

[Jeremiah@RHJAccountants]

Ltd will retain more of your income than an Umbrella will. Have a read of the Umbrella and Ltd guides on the right hand side of the page.

There is a number of threads on 90% schemes, the general consensus is avoid at all costs..

+1 Ltd

As a contractor you will have complete control over your company and money

All money will be paid into your business bank account meaning it does not go through a third party.

For those deemed outside IR35 you can take advantage of the low salary/dividends method meaning less tax and NIC to pay

[Martin at NixonWilliams]

I am new to contracting and have heard about two possible avenues: umbrella and Ltd.

Are there other options as well?

My desire is simple: retain as much of my gross salary as possible.

I have read of schemes where you can retain as much as 90% of gross. Are these schemes legal?

Thanks

Ltd will retain more of your income than an Umbrella will. Have a read of the Umbrella and Ltd guides on the right hand side of the page.

There is a number of threads on 90% schemes, the general consensus is avoid at all costs..

[Pondlife]

Ltd.

I'm sure there was a poster on here who offered some offshore scheme that returned over 110%. Think his name was Original Gangster or something similar. He hasn't posted for a while but I've no idea why.

[GillsMan]

go permie.

FTFY

[rsingh]

Read the stickies and guides. If you are still unsure, go permie.

[speling bee]

Ltd.

[cojak]

And in the very remote possibility that you're not a crap sockie we will point and laugh at you when you come back whining that the HMRC are demanding their pound of flesh plus penalties and you discover that your scheme provider has closed up shop and done a runner.

And you can still bugger off...

[northernladuk]

There is a thread not 4 below this discussing the merits of 90% schemes. Hell it's even in the title.

You are a crap sockie. 0/10 now bugger off.

[smileyface]

I am new to contracting and have heard about two possible avenues: umbrella and Ltd.

Are there other options as well?

My desire is simple: retain as much of my gross salary as possible.

I have read of schemes where you can retain as much as 90% of gross. Are these schemes legal?

Thanks