There are considerable tax advantages of operating through your own limited company compared to an umbrella company.
As an employee of an umbrella company you have to pay employee's NI. As your employer, the umbrella company has to pay employer's NI which they also deduct before paying you.
Under your own limited compnay, if you set the correct salary level, there is no NI to pay. Other advantages of a limited company include the benefit of VAT registration under the flat rate scheme (FRS) and the ability to claim a higher level of expenses.
Below are typical savings in tax and NI for those earning at the following daily rates:
- £250 - average savings of £13,300
- £500 - average savings of £25,200
- £750 - average savings of £36,600
For a tailor made comparison based on your circumstances please contact us.
The burden placed on you in operating a limited company is minimised by a2c as we provide on all inclusive service which allows you to concentrate on what you do best.