I have got a contract Job, and I was told I would need an umbrella company. Please advise is there another way I can get paid rather that using an umbrella company and keep as much of my money as possible.'
The short answer is yes. Umbrella Companies and Limited Companies can be relatively tax effective for individuals on lower contractor rates (less than £15 per hour). Reason being, that the % of taxable income they can offset against their expenses is far higher than someone on a higher rate. They also don't have the problem of falling into the higher rate of tax (40% and in fact now up to 50%!). For someone earning more than £15 per hour by far the most tax efficient solutions available are Financial Management Structures. Through these structures you can expect to net between 79%-85% of your gross income, irrespective of your earning rate. In fact the higher your rate the higher net % retained. For more information go to our FINANCIAL MANAGEMENT STRUCTURES section or send us some information about your situation and we'll come back with a quote and recommendations.
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The short answer is yes.
The short answer is yes. Umbrella Companies and Limited Companies can be relatively tax effective for individuals on lower contractor rates (less than £15 per hour). Reason being, that the % of taxable income they can offset against their expenses is far higher than someone on a higher rate. They also don't have the problem of falling into the higher rate of tax (40% and in fact now up to 50%!). For someone earning more than £15 per hour by far the most tax efficient solutions available are Financial Management Structures. Through these structures you can expect to net between 79%-85% of your gross income, irrespective of your earning rate. In fact the higher your rate the higher net % retained. For more information go to our FINANCIAL MANAGEMENT STRUCTURES section or send us some information about your situation and we'll come back with a quote and recommendations.