Should the hourly rate always be higher with my Limited Company vs Umbrella?

[ukmercenary]

I suspect Slinkydonkey could mean that some agencies advertise a higher rate for Ltd versus being on their payroll, it's nothing to do with Umbrellas and reflects the cost difference to the agency including employers NI.

Being tax efficient is a different debate

Yes think I was getting confused thanks

[TykeMerc]

I suspect Slinkydonkey could mean that some agencies advertise a higher rate for Ltd versus being on their payroll, it's nothing to do with Umbrellas and reflects the cost difference to the agency including employers NI.

Being tax efficient is a different debate

[northernladuk]

Hello

Ive just accepted a contact for a given hourly rate this hourly rate they same is same rate as if going through an umbrella company as going through a limited company.

Im sure ive seen other contacts on jobserve where they say the hourly rate is higher for a limited company?

This role is starting on monday and I dont have a lot of time to investigate could some advise if you know it would be of great help if response was speedy!

Thanks
Paul

The client pays you to do work. End of. He will pay you what he thinks is a worthwhile sum, you will try and negotiate it up as you think you are worth more.

Its is of no concern to the client how you manage your own money and I would think it pretty unprofessional if you start discussing it with him. He is going to take a pretty dim view if you start asking for more money becuase you can't sort out your own affairs to suit you the best.

You should be pushing for more money everytime because your worth it, not because of your own (private) situation.

[MarillionFan]

Hello

Ive just accepted a contact for a given hourly rate this hourly rate they same is same rate as if going through an umbrella company as going through a limited company.

Im sure ive seen other contacts on jobserve where they say the hourly rate is higher for a limited company?

This role is starting on monday and I dont have a lot of time to investigate could some advise if you know it would be of great help if response was speedy!

Thanks
Paul

The rate is the rate.

I believe what you have been reading(or have seen) are adverts that purport to let you keep a higher percentage of that rate.

We all have to pay tax but there are different mechanisms between using a Ltd company or through an Umbrella.

If you earned £20 per hour x 40 hours a week by 50 weeks per year (ie. £40K). You would want to take home as much as that as possible. Ltd is useful for high earners but you do all your own accounts/expenses/paye etc. If you are new, an umbrella company will charge you to this and attempt to return as high a percentage as possible.

In both cases you should retain more of your '£40k' then if you were employed.

NB : IR35 excluded.

[ukmercenary]

Hello

Ive just accepted a contact for a given hourly rate this hourly rate they same is same rate as if going through an umbrella company as going through a limited company.

Im sure ive seen other contacts on jobserve where they say the hourly rate is higher for a limited company?

This role is starting on monday and I dont have a lot of time to investigate could some advise if you know it would be of great help if response was speedy!

Thanks
Paul