Making the jump, from umbrella to limited

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Dow Jones replied

18 January 2008, 16:00
Grey area

Not quite as high as 80%. Depends on your turnover and how you split the divis. On an average t/o (£ 70-80k), you'll be looking at nearer the 70%. Umbrellas take away the worry of IR35 and they are OK if you want to nip in and out between permie and contracting jobs. Hassle of keeping your Ltd. Co. may be a burden for some, OK for others. Careful how you split up the divis, as if IR can't catch you on IR35, then they go for 'unfair income distribution' between partners (assuming you do that)
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Cooperinliverp00l replied

18 January 2008, 15:39
Originally posted by dawson View Post

Hello,

I've been with my present umbrella company (Parasol) for about a year now and though they have provided a great service I think it's time I went Limited as I don't think I'll be returning to permanent work anytime soon.

I'd quite like to use the services of a specialist accountancy company (e.g. sjd) as I don't really know what I'm doing and by all accounts they do a lot of the more complicated work for you.

Any recommendations of any other companies and anyone got any good or bad experiences with anyone.

My main reason for doing this is that my take home with the umbrella company probably averages around 64% ish whereas I'm told that with a limited company it will be around 75-80%. Is this true, or should I stick with my umbrella company after all? Thanks, D

Check out the Business and Accounting forums as it's not as simple as taking home 75% of your income there is IR35 to read up on first
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G8_Summit replied

18 January 2008, 15:09
Could I kindly refer you to Here or here in this forum.

HTH
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dawson started a topic Making the jump, from umbrella to limited

18 January 2008, 14:51
Making the jump, from umbrella to limited

Hello,

I've been with my present umbrella company (Parasol) for about a year now and though they have provided a great service I think it's time I went Limited as I don't think I'll be returning to permanent work anytime soon.

I'd quite like to use the services of a specialist accountancy company (e.g. sjd) as I don't really know what I'm doing and by all accounts they do a lot of the more complicated work for you.

Any recommendations of any other companies and anyone got any good or bad experiences with anyone.

My main reason for doing this is that my take home with the umbrella company probably averages around 64% ish whereas I'm told that with a limited company it will be around 75-80%. Is this true, or should I stick with my umbrella company after all? Thanks, D
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