When it comes to umbrella vs limited company, each option has its unique advantages and drawbacks that contractors should take into account when making their decision. To help, Umbrella Supermarket has put together this handy guide explaining the pros and cons of each option, to help every contractor make the right choice.
Firstly, let’s look at what the two options look like.
One route contractors can take is to operate under an umbrella company.
Under the umbrella route, contractors are employed by an umbrella company who puts them on their payroll. The contractor sources and secures their own work, but is then paid a salary by the umbrella company who consequently deducts the tax and National Insurance owed by the contractor under the PAYE system.
As the contractor is employed by the umbrella company, they, in turn, receive the same statutory benefits enjoyed by all employees, including sick pay, holiday pay, a workplace pension and maternity or paternity leave.
In exchange for these services and range of benefits, the contractor pays the umbrella company a fee.
That’s what the umbrella route involves, so what does working under a limited company look like?
With the limited company route, a contractor sets up their own company and is therefore self-employed. In turn, they are responsible for securing their work and invoicing the client. They will be paid by the client directly, and therefore take on the responsibilities of running a business, inclusive of accounting, admin and paperwork. They will pay tax and National Insurance through self-assessment rather than PAYE.
Those are the two main options, but how can contractors choose the best route for them?
Next, we will look at both the pros and cons of each route to help you decide.
The pros of working under an umbrella company are many and varied. Some of the main pros of this option include:
The cons of working under an umbrella company include:
Those are the main pros and cons of an umbrella company, now let’s look at the pros of a limited company:
The main cons of operating through a limited company include:
Having weighed up both the pros and cons of limited company vs umbrella company, contractors can make an informed decision on the best route forward for them.
For those contractors that have opted for the umbrella company route, the next step is to find the best umbrella company to work with.
With Umbrella Supermarket’s quick and easy to use umbrella calculator, contractors can find the perfect umbrella company for their needs in a matter of minutes. Simply input your details, contractor requirements and daily rate and we will show you a list of the best-suited umbrella companies, as well as how much you will take home under each. Why not see what we can do for you today?
Any contractor considering switching to an umbrella company will want to know how to find the best provider to work with.
Although you could spend your precious time and energy searching the web for the best umbrella company, there is an easier way – using an umbrella calculator.
In this guide, Umbrella Supermarket explains why every contractor should use an umbrella calculator in 2021.
If you are considering contracting you will need to decide on PAYE or umbrella.
It can be a difficult decision to make and contractors will inevitably be questioning which option will be the best for them.
To help every contractor get on the right track for them, in this guide Umbrella Supermarket looks at PAYE vs umbrella, outlining the key differences and how this will impact you.
There are many reasons that contractors across the UK opt to work under an umbrella company.
Umbrella companies offer an easy way to contract and remove the need for the contractors to worry about the burdens of admin, finances, tax and IR35, all things that limited company contractors have to deal with.
For this reason, many contractors will be weighing up their options and questioning whether it is worth using an umbrella company in 2021. To help make the decision that little bit easier, Umbrella Supermarket has put together this guide on the pros and cons of using an umbrella company.
Any contractor that is considering operating through an umbrella company in 2021 will need to understand Umbrella Company fees - from why an umbrella company charges fees, how they are paid to how much the contractor will pay.
In this guide, Umbrella Supermarket answers those all-important questions to help every contractor know exactly where they stand when it comes to umbrella company fees.
If you’ve made the decision to contract through an umbrella company in 2021, you will next need to find an umbrella company that’s right for you.
After all, there are lots of umbrella companies out there, so how do you know which one to choose?
To help you find the best umbrella company for you, in this guide Umbrella Supermarket outlines what makes a good umbrella company, so you can rest assured you’re making the right move.
One of the many advantages to operating through an umbrella company for contractors is that they become an employee of their chosen provider.
In turn, this means that the contractor will be automatically enrolled onto the umbrella company’s workplace pension scheme.
To help contractors find out more about umbrella company pensions Umbrella Supermarket has put together this handy guide.
If you are considering contracting through an umbrella company you will naturally have questions and queries over how they work.
After all, making the move to umbrella can be a big step for contractors. To help, in this guide Umbrella Supermarket explains how to get started with an umbrella company and share our top tips for using one in 2021.
PAYE or umbrella is a question asked by every contractor. Which one you opt for will have a big impact on your contracting career and lifestyle. So, it's important to make the right decision for you.
To help makes things a little bit easier, Umbrella Supermarket has put together this guide on PAYE or umbrella, outlining the key differences between each, to help you make the best and most informed decision for you.
One of the many benefits to working through an umbrella company is that you will receive holiday pay as well as a range of other statutory benefits including sick pay, maternity and paternity pay.
To find out more about umbrella company holiday pay, and how to calculate how much you will be entitled to, Umbrella Supermarket has put together this handy guide.
Contractors must make several decisions throughout their contracting careers. One big decision contractors have to make is how they will operate.
One way that contractors can work is through an umbrella company.
Umbrella companies have become an increasingly popular way to contract in the past few years, offering many benefits to the contractor. But, how do you know whether this option is right for you?
To help every contractor make the right decision for them, in this guide, Umbrella Supermarket explains when not to use an umbrella company.
There are tons of benefits to using an umbrella company, which is why they have become such a popular option for contractors in recent years.
After all, an umbrella company takes away the stress and hassle of operating through a limited company whilst offering contractors a range of advantages, such as statutory rights, paying them a salary, deducting correct tax levels and National Insurance, and taking care of tasks like expense processing and invoicing.
However, as more and more contractors opt to use the services of an umbrella company, more providers have started to claim that they are HMRC approved.
To bust the myths around HMRC approved umbrella companies and get straight to the facts, in today's guide Umbrella Supermarket look at whether HMRC approved umbrella companies really exist, so you know exactly where you stand.
If you're considering making the leap to contracting, you will understandably want to know how much you will have to pay in umbrella company costs. After all, this amount comes directly out of the contractor’s pocket, so it’s important to be clued up on how much you should expect to pay.
To help contractors, in this guide Umbrella Supermarket answer the all-important question of how umbrella companies cost in 2021.
