As a contractor, one of the biggest decisions you’ll have to make is whether to join an umbrella company or set up your own limited company.
Fortunately, the experts at Parasol and our sister company, ClearSky Contractor Accounting, are here to offer you the very best advice and provide you with a solution that suits you best.
Differences between umbrella & limited
Income If you’re paid more than £15 per hour, you’re likely to earn more by going limited as you can structure your finances tax-efficiently
Duration An umbrella company is more suitable for short-term contracting. If you’re planning to contract for some time you should consider setting up a limited company
Your status You are an employee of an umbrella company but if you go limited you will be the director of your own company
Admin An umbrella company takes care of all your admin. As a limited company director you’ll have more responsibility and paperwork