Umbrella company services vs. Limited companies

Limited Company

Vs.

PAYE Umbrella

Advantages

Advantages

Prices start at just £80 + vat!

Extremely competitive fee at only £22

Flexible tax planning and management of business monies.

Ideal for short-term contracts between permanent assignments.

Extra flexibility with allowable expenses.

Cost-effective way for people who want to work as a contractor short-term, or when they are filling in between permanent jobs.

You can remain in the driving seat, allowing you to take complete control of your financial affairs.

Our umbrella company can issue invoices on your behalf, collect payments from clients or agencies, calculate your tax and National Insurance contributions and pay your net earnings into your personal bank account.

Running your own business is simple; Danbro will provide you with your own client manager that will take care of all your records and any queries you may have, providing you with a personal service.

Very easy to use, you simply enter your timesheet and expense details and wait to be paid.

The finances of a limited company will be separate from your own personal finances. This means that you are not personally responsible for any company debts, except in exceptional circumstances.

You do not pay if you are not working but can remain with our umbrella company for free until your next contract.

Can be provided with a statement of earnings if requested.

Being under the Danbro PAYE Umbrella, allows you to use our generous expense policy.

Disadvantages

Disadvantages

You are required to fill in a certain amount of paperwork, usually 15 - 20 minutes per month.

Working under an Umbrella company effectively means you are a full-time employee for that company, which requires you to receive a salary subject to PAYE Tax and NI.

Not ideal if you contract for a short period and go back to full-time employment.

You depend on your Umbrella company to collect payment from the client you worked for, and then pay you.