Limited Company vs Umbrella Company vs Employee

1) As a Contractor using Limited Company

Gross: + 50,000

Rate: 250 per day

Contract length: 9 months

Expenses = - 7000 (salary) - 7000 (salary) - 2000 (Travel, etc) - 1000 (accountant) = - 17000

Company Profits: + 33000

Corporate Tax (22%): -7000

Company Net Profit (Dividend): + 26000

Dividends Tax (10%) = - 2600

Dividends Credit (10%): + 2600

Overall tax paid: -7000

Overall net: 26000 + 16000 + 1000= +43000

Take home over 85% of your gross!

Any legal issues?

2) As a Contractor using Umbrella

Gross: + 50,000

...

3) As an Employee

Gross: + 50,000

Length: 11 months in a year

Tax: - 14,500

Net Salary: + 34,500

Expenses: - 2000

Overall Net: + 32,500

Take home 64% of your gross!