Offshore Umbrella Company Returns
So, what are the offshore umbrella company returns on your hard-earned cash compared to other options?
First of all, what are the other options?
Firstly, you can just pay up on your IR35 tax. Secondly you can operate through a Limited Company (or Personal Service Company). Thirdly you can operate through a PAYE Umbrella Company. Finally, you can operate through an offshore umbrella company.
Offshore Umbrella Company
Offshore Umbrella Company Returns can vary anywhere between 85% and 90%, depending on your income. Using offshore umbrella companies are by far the best method of keeping most of your money.
So, if you earned £100,000 you would expect to keep £85,000 to £90,000 of the money you earn.
Limited Company (Personal Service Company)
This is the next best option. However, you would still be £10,000 to £15,000 down than the offshore umbrella company returns. You would expect to keep around 75% of your money. So, you would keep around £75,000 if you earned £100,000.
Onshore Umbrella Company
Using a normal onshore umbrella company would let you keep around 60% of the money you earn. This means you would keep around £60,000 of the £100,000 you earned.
If you pay the IR35 tax or use normal PAYE, you would get back around £55,000 of £100,000 that you earned.
There are many reasons for using one or the other. However, if it is a bean count, and you are just going for the most lucrative option then the offshore umbrella company returns of up to £90,000 makes it a no-brainer for contractors.
You could be keeping up to £30,000 a year more by using an offshore umbrella company rather than using a normal onshore umbrella company. That mounts up over time. That money escapes you.
To find out more about offshore umbrella company returns you should click on Offshore Umbrella Company Directory