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Viewing Which Option is Best for you - Own Limited Company or Umbrella Company? from 6 Limited Company or Umbrella Company - Umbrella Company or Own Limited Company - What is Best for You? Written by Contractor Supermarket

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Which Option is Best for you - Own Limited Company or Umbrella Company?

 

 

Contractor umbrella companies have been serving contractors for more than ten years. Umbrella companies are designed, and have developed over the years, in line with the needs of modern day contractors.

Prior to umbrella companies, contractors had to set up and manage their own limited company.

Running your own limited company involves a great deal of work to keep it going, and contractors are burdened with endless complex paperwork & administration, which has to be completed after a hard day's work.

It's not surprising contractors quickly became fed up with doing a full day's contracting work then coming home and having to sit in front of their computers all night filling in spreadsheets and forms.

Running your Own Limited Company may Sound Good

Running your own limited company may sound good, and being a ‘director' carries a certain amount of kudos, however, behind the façade does lie an endless stream of rules, regulations & red tape that has to meet certain minimum standards and be submitted within strict time deadlines.

Being the boss of your own limited company actually involves knowing a fair amount about spreadsheets, invoicing and contracts - as an absolute minimum.

Contrast An Umbrella Company with a Limited Company

The only form a contractor has to fill out when working through an umbrella company is their timesheet. Once this part is completed the umbrella company does everything else for the contractor.

If you're a contractor, set up and manage your own limited company if you can tick these:

Have had training

Are an accountant

Like red tape

Enjoy administration & paperwork

Understand complex forms

Have nothing better to do of an evening or weekend than complete forms

Believe biros will never replace fountain pens

Ky Smith, Managing Director of GoUmbrella, says:

"These days, umbrella companies are the smart option. Not only is it cheaper than running your own limited company, but also carries significantly less administrational overhead. You are also able to maximise your salary in the most compliant method, ensuring that you don't incur any surprise tax liabilities in the future.

"All it takes is a quick call to our friendly and professional team to get set up with an umbrella company service. And if contractors don't fancy making a telephone call, they can register online - it's free to register and only takes minutes"

Visitors who read this article went on to read these articles:

1. Is an umbrella company your best option?
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3. HMRC umbrella companies
4. Umbrella companies and business expenses
5. Over 70,000 of the latest contract jobs in the UK

 

 

written on2010-07-29 01:19:03

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