Best Umbrella Companies Alternatives
So, what are the best umbrella companies alternatives?
Indeed, what makes a good umbrella company and what are the best alternatives to umbrella companies?
First of all what are the alternatives to umbrella companies.
Well, you could just pay tax as if you are an employee.
Retaining More of Your Money
For a person earning £100,000 a year that would mean that you would retain £55,000 of your hard-earned money and would give the Government £45,000 a year.
Chancellor Osborne would be delighted by that. He, of course, has an offshore family trust from which he benefits.
So, a freelancer using an Umbrella Company keeps £60,000 of his, or her, money earned and would send the Treasury £40,000 a year.
However, from April 1st 2016 much of this gain disappeared as the Chancellor decided that most umbrella company contractors are no longer able to claim travel & subsistence expenses against tax.
Limited Company Alternative
The main alternative to umbrella companies is the limited company – or the personal service company as the Chancellor likes to call it when one person owns it.
Therefore, of the £100,000 a contractor earns, he, or she, keeps £75,000 of that, donating £25,000 a year to the country.
Now, those using tax efficient limited company structures can retain £85,000 of their hard-earned cash.
Most limited company contractors don’t use the most efficient methods of protecting their income from the taxman and these vehicles help them to do so.
So, to find out more click on Limited Companies
Onshore Umbrella Companies
There are also specialist onshore non-PAYE umbrella companies who allow contractors to retain £85,000 a year using different methods.
So to learn more click on Umbrella Companies
Apply for More Information on All Three Options
So, just fill in the form below to get your information pack on how the above three best umbrella companies alternatives work. Click Y against each of those options for which you want to receive the Infopack.