Limited Company Benefits

Why choose a limited company?

Depending on your circumstances, trading through your own limited company may be more tax efficient than Agency PAYE and Umbrella routes.

Is trading through a limited company the best option?

If you are comfortable with all the below, then we would advise that a limited company may be the most tax efficient route for you as an individual:

 

  1. Earn £20 p/hour or more
  2. Are a long-term contractor
  3. Happy you are not caught by IR35
  4. Able to set up business bank account
  5. Happy to set up own insurance
  6. Happy with the responsibilities of running your own limited company

If you do not meet each of the above criteria then we would advise you operate through Focused’s PAYE Umbrella.

Comparison figures

Working through an umbrella company you would typically expect to take home around 60% – 65% of your contract income.  Working through a limited company you would typically expect to take home around 75% – 80% of your contract income.  However, in order to provide an accurate analysis of your eventual take home pay, we would need to speak with you personally and provide a tailored quote.

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