Umbrella Payroll Vs Limited Company
Work Like a Freelancer - Get Paid Like an Employee
Independent Contracting is on the increase in the UK, and with the new government’s
decision to abolish the much-loathed IR35 legislation, we are bound to see a huge
increase in contracting in coming years.
Many skilled people wanting to go the contracting route are often put off by
what they perceive as a huge amount of admin and tax obligations. While this might have some truth to it, you needn't be discouraged.
If you’re considering contracting, partnering with a reliable and professional accounting
or Umbrella company could make all the difference to your contracting life.
The first decision you will have to make is whether to set up and run a Limited
Company or work through an Umbrella Payroll Company.
While a Limited Company has a wide range of tax benefits, it also brings with it
considerable obligations in terms of monthly and annual paperwork. A Limited Company
could be the appropriate solution for your situation but you will need to be highly
organised and be vigilant in ensuring you stay on top of all tax and admin issues.
There are also many advantages to working through an Umbrella Payroll Company and this is often the easiest option for Contractors,
particularly for first-timers and for contractors who might go back to permanent employment after a brief
contracting period.
The main benefits of using an Umbrella Payroll system is the increased take-home pay over PAYE and the huge reduction in the
amount of admin when compared to a Limited Company.
1st Contact Umbrella has an online system with facilities that allows you to do everything online - from filling in timesheets to submitting your expenses.
“With 1st Contact Umbrella, you can enjoy many of the benefits of being a permanent
employee, with all the freedom of a contractor lifestyle” says Scott Brown
of 1st Contact. “There are also many advantages that people aren’t aware of, including
the option to receive sick pay and maternity pay** – benefits normally
reserved for those who are permanently employed.”
Seek reliable, professional advice before making your decision
It’s always a good idea to get as much advice as possible before going on your own.
While this lifestyle offers many rewards, it’s not easy to begin with. But with
the right support, you can take the leap and succeed.
“The best thing to do is consult with an expert. Everyone’s circumstances are different
and there are many factors to consider. A 1st Contact Umbrella consultant will be
able to analyse your situation and help you to make the very best decision for you”
says Brown.
With a company like 1st Contact, you're able to discuss your unique situation with our expert consultants who can help you select the most appropriate solution.
1st Contact offers an Umbrella Payroll solution as well as limited company formation and contractor accounting services.
Contact us today to help you choose a umbrella payroll solution..
**Terms and conditions apply for sick pay and maternity pay.