Using an Umbrella Company Service vs. Forming a Limited Company

Contractors0844 357 7353 or text us: 07786 207734

Agencies0844 357 7383

  • Are you going into contracting because you want to be a well-paid IT expert, or because you want to be a director of a company?
  • Perhaps you're thinking of a first contract, or of going "Limited" but aren't sure what your options are?

Whatever your reasons, just compare the benefits of contracting through Drole versus managing your own Limited company.
Just contact us to talk thorugh a change in your contracting status - our contractors are free to come and go as it suits them.

Let's look first at what you typically have to do if you form your own company:

  • You pay an accountant to do your detailed accounts and VAT
  • You submit accurate corporation tax returns, and pay against them
  • You keep Companies House informed of your legal affairs via various forms and returns
  • You issue invoices and maintain Receivables
  • You must pay for and maintain Employers, Public and Professional Insurances
  • You set up and maintain separate company bank account(s)
  • You observe statutory timelines and calendars in compiling documents and returns
  • You may come under IR35 rules and be unable to pay dividends
  • You declare any dividends received (more forms) to HMRC and pay personal tax due on these, plus estimated amounts against what you might earn during the following year.
  • You are personally responsible to HMRC if anything goes wrong (not your accountant)
  • You have to wind down the company again if things don't go as planned
  • and more ...

You might manage higher after-tax returns as a company director, compared to an employee, but as you can see, it does not come free of time or cost.

Now compare the benefit of working within the Drole umbrella service:

  • You can still claim every legitimate business expense as a contractor
  • All your employment tax and national insurance requirements are handled for you
  • Regular invoices are raised on your behalf - just send us your hours worked
  • Professional Indemnity, Public Liability, and Employment insurance at our cost, not yours
  • Tax efficient Pension contributions from your invoiced earnings
  • No worries about government legislation such as IR35
  • You concentrate on building your career and raising your market rates
  • You have the benefit of employee status if you're applying for a loan or mortgage
  • The Drole umbrella company was built by IT contractors (we are the longest-serving UK-based umbrella, so you know that we know the contracting business)
  • You have the peace of mind of knowing that hundreds of other IT contractors have signed up with Drole, with some staying for 5, 10, and even 15+ years
JOIN NOW
Become a member
JOIN NOW
Text a question:

  07786 207734

Call me back

You can see that the umbrella company model is a compelling alternative to forming a LTD. Company, especially if you are just starting out