Agency Payroll or Umbrella Company (Feature)

[PhilAtBFCA]

In our view people should consider a Limited Company only if they really want to run their own business.

It is not just about the money anymore, as a business owner you have to take real decisions and you have real responsibilities, but there are rewards.

Just on the numbers a VAT registered Limited Company will always return more net income both Inside IR35 and Outside IR35 than an Umbrella Company, and with many accountants a Limited Company can cost less to run than an Umbrella Company.

PAYE with the agency seems to be becoming a real opportunity too for some people. With the arrival of TAWD next year this could impact on your decision further.

You can see a spreadsheet and a video explanation here , this model compares Ltd Co, Umbrella and PAYE options so you can see all the numbers.