VIEW PACKAGES 01925 644 424 Services Contractor Resources About Clients Search Limited Company vs PAYE Umbrella: The Ultimate Guide Limited or umbrella? Find out how best you should operate as a contractor with our video and downloadable guide. DOWNLOAD THE GUIDE SJD Accountancy > Resources > Becoming a Contractor > Limited Company vs PAYE Umbrella: The Ultimate Guide As a contractor, there are a number of ways in which you can operate, but two key choices are: through your own limited company or under a PAYE umbrella. Both options offer a number of pros and cons depending on your experience, the length of time you intend on contracting and the level of time you have to dedicate to paperwork. To better help you understand your options and which route is best for you, we’ve put together our handy downloadable guide and video. What’s inside the guide? Umbrella & Limited – the differences between the two structures. Advantages & disadvantages – which route is best for you? Rates of take-home pay – how much could you earn? Unsure how to operate? Watch our brief LTD vs PAYE Umbrella video, then get more detail on what structure is best for you in our FREE guide. Download your FREE guide today Where did you hear about us? I found you on Google/Bing/Yahoo I’m a current client A friend told me about you I saw your adverts online A recruiter told me about you I’m a previous client Other Would you like to chat to a specialist? Yes please No thanks Would you like more great content by email? Yes, I’d like you to email me No thanks, I have enough content We want you to know exactly how our service works and why we need your details. Please read our Privacy Policy before you continue. Forming your own limited company Contracting under your own limited company means that you will be in charge of your accounts, your salary and your taxes. You will need to establish your limited company and open your business bank account. As the limited company director, you will control invoicing, the company bank account and decide on how much to pay yourself, which is made up of a combination of salary and dividends. Contracting through PAYE Umbrella Working under an umbrella company, on the other hand, means that this will be the responsibility of your umbrella company who will act as your employer. You submit your timesheet to your umbrella company who will then pay you a salary with National Insurance and tax already deducted. What benefits do I get from setting up a limited company? Both structures come with their own perks dependant on your circumstances. However, becoming a limited company director does give you the following: Complete control - you maintain complete control over your financial affairs. A wider range of expenses - being a limited company director means you have greater access to expenses which can be claimed back. Personal accountant - by working with a dedicated personal accountant, you can maximise your take-home pay. DOWNLOAD We're Here to Help We've been providing expert accountancy advice and helping contractors to focus on doing what they do best since 1992. If you're still unsure about what route is best for you, call our friendly team on: Most Popular Pages If you need any further help or advice try these most popular links. LIMITED COMPANY FORMATION CALCULATE PAY SECTOR ADVICE Back to top Contact Us 01925 644 424 Useful Links Terms & Conditions Recruiters Privacy Modern Slavery Copyright SJD Accountancy 2021. All rights reserved. SJD Accountancy Ltd is a company registered in England & Wales. Company Registration Number 06277058. By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. Accept All Cookies Reject