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The 6^th April 2021 marked significant changes to IR35 legislation which impacted thousands of self-employed, limited company contractors operating within the private sector.

In light of the changes that have now rolled out, many limited company contractors are understandably considering their options and thinking about making the move to umbrella this new tax year.

To help make the decision that little bit easier, in this guide Umbrella Supermarket outline what contractors need to know about making the move from limited company to umbrella in 2021, to help you get on the right track.

Every contractor must choose between umbrella vs limited company. It is a decision that impacts the way you operate, are paid, contributes tax and National Insurance and whether you will fall in or outside of IR35. Clearly, it isn’t a decision to be taken lightly.

When it comes to self-employment, there are generally three options on the table. Operating as a sole trader, setting up a limited company or joining an umbrella company. In years gone by, the second option was by far the most popular due to its enviable tax efficiency and reduced liability. However, the introduction and expansion of IR35 legislation has affected its standing to no small degree.

If you want to take a closer look at the umbrella avenue, Umbrella Supermarket is always on hand to help. By entering a few details on our umbrella comparison site, you can get several quotes from reputable umbrella companies to find the best deal for you.

Contractors are not only free to work for multiple clients on multiple projects at a time. They earn more per hour than their employed counterparts and they work on a greater variety of challenging projects. Being a contractor is not an easy life – it’s more insecure and uncertain but the rewards are there if you make the decision to go solo.

In this post we examine how to set up a limited company, how to inform HMRC that you’re self-employed, and the benefits of setting up a limited company to contract through. For contractor limited companies and their directors, good accounting and bookkeeping are essential.

Directors of contractor limited companies must be aware of their responsibilities to HMRC and Companies House. In this guide, we cover everything from what is IR35, a Director's role and also Contractor VAT.

It is important to know about the broad range of limited company contractor expenses that can be claimed back. This section covers Capital allowances for contractors, types of expenses you can claim back and Contractor expenses when working away from home.

There is a wide variety of ways in which a contractor limited company can market itself including a well-written CV, using a recruitment agency, online job boards, LinkedIn, networking, websites, and email marketing. Marketing gets a contractor in to see an interviewer who will eventually award the job. We look at the mindset of an interviewer, phone interviews, what’s expected at face-to-face interviews, and the increasing frequency of Skype interviews.

Directors of contractor limited companies have multiple opportunities to efficiently structure how they pay tax. In this post, we consider salary and dividend splits, appointing family members, claiming back expenses from previous years, capital expenditure allowances, tax free savings accounts, special investment schemes, single premium investment bonds, and Members’ Voluntary Liquidations.