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

Contractor umbrella companies have been serving contractors for more than ten years. The umbrella company service is specifically designed, and has developed into a sophisticated process, in line with the needs of modern-day contractors. People who want things done quickly & wants it done right. See our useful introduction to an umbrella company guide for more information.

Before the umbrella company service came along contractors had no choice. They had to set up & manage their own one-man limited company.

• Running your own limited company involves a great deal of work to keep it going, and you'll be 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 & forms.

Look at Me - I'm a Director!

Running your own limited company may sound good, and being a ‘director' carries a certain amount of kudos, however, behind the façade lies 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 you'll fill in when using the umbrella company service is your timesheet. The umbrella company does everything else for you.

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

1. Have experience
2. Are an accountant
3. Like red-tape
4. Enjoy administration & paperwork
5. Understand complex forms
6. Have nothing better to do of an evening or weekend than complete forms
7. Believe biros will never replace fountain pens

The Smart Choice

These days, the umbrella company service is the smart option. Not only is it cheaper than running your own limited company, but also requires significantly less in-put from you. You are also able to maximise your salary in the most tax compliant method, and it ensures you don't incur any surprise tax liabilities in the future.

All it takes is a quick call to an umbrella company (there's lots to chose from, we have independent reviews of all the umbrella company services available) to get set up with an umbrella company service.

And if you don't fancy making a telephone call, you can register online - it's free to register and only takes minutes.