Limited versus. Umbrella company

December 12, 2011 | Author: | Posted in Business

When you work through a limited company, you run your own business. This implies that you have got the choices to make. You have to hire people for your management and admin tasks. You also have to hire monetary specialists to manage multiple income streams. In a similar way, it will end in higher profits since the net earnings will be higher after reduction of taxes.

With a limited company, you become the director of the company. You'll have all the responsibilities to keep the corporations House informed. Likewise, you will have the responsibility to pay for reliable accountant services. This may increase the responsibilities as well as financial burden.

When you operate thru limited company as a contractor, you have got to keep VAT records and produce other necessary accounts. These things come attached to limited company. Therefore , you'll have increased responsibilities and you will be the only one responsible for the communication with HMRC. Furthermore, you'll be the only one accountable for all of the accounts and invoices. If anything goes wrong, you'll be the individual responsible for that.

On the other hand, contractors working thru umbrella companywill have lesser responsibilities. The umbrella will take all of the accountability for admin as well as management jobs. This implies that you won't have the responsibilities like you have in the event of limited company. You will only need to find a top umbrella company to enjoy these advantages.

An umbrella will supply you complete peace of mind. You will know all your duties and contractual responsibilities. The specialists in umbrella company will take care of all of your expense claims, payroll management, customer billing and tax kickbacks. Since umbrella company is a tested solution, you don't have to worry about anything going awry. All that you need to do is to be certain that you're employed thru a top umbrella company and not just any company that comes your way.

Greg Dickson is head of selling for the Bedouin Group, one of the number one providers of umbrella company solutions for contractors and self employed staff. Bedouin Money also provides contractor mortgages, contractor payroll,
contractor tax calculator and contractor annuities.

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