There are currently more than 200,000 workers operating through umbrella companies in the UK and the number is growing every year. Contractors are abandoning limited companies in droves as legislation makes them ever more difficult to work through with ever decreasing tax breaks. Indeed umbrella companies are fast becoming the default setting for new old […]
For several years now the first choice a contracting had to make when going into the contracting sector on their own was to choose which type of tax cehicle was the most suitable for their purposes. And typically most service providers inevitably chose the Limited route. However, as we will see, the ongoing intro of ever more limiting tax legislation relating to professionals has made the choice less and less clear cut and in reality, made the umbrella business more favorable with each new law. And with the arrival of the much-despised IR35 regulation (and more recently the new Onshore and Offshore employment policies) the umbrella business has swiftly becoming the tax setup for many contractors. That stated, the field is still quite uniformly split and new specialists pertaining to the sector attempting to decide whether they need to go Limited or work via an umbrella are still dealing with a challenging call. This post will attempt to clear some of the choices involved and ask whether, due to all the new guidelines, the Limited Business is still worth it?
Regardless of having actually been around for years, umbrella business are still the only video game in town when it concerns rock-solid, HMRC friendly tax options for professionals. Along the method umbrella companies have seen off Managed Service Companies, Offshore Solutions, EBT and numerous other Solutions. When it concerns cutting out admin and paperwork and increasing take home pay, umbrella companies are still where it’s at!
If you’re thinking about moving from a limited company to an umbrella company then it’s probably safe to assume you’ve been contracting for some time and have an idea of the advantages that switching to an umbrella offers. Here at Hamilton Bradbury we’ve found that most of the contractors who come to us from limited […]