Limited Company Options for UK Contractors
Contractors can use Limited Companies and still get the returns that they can get from using offshore umbrella companies by using tax-efficient limited company options.
Normally a contractor who uses an umbrella company will see from 60%% to 65% returns on his or her income.
A contractor who uses a limited company will get 70% to 75% returns.
A contractor using an offshore umbrella company will get 84% to 90% returns on their income.
High Returns Using Limited Companies
However, by using efficient tax planning, contractors can get 85% returns. That’s whilst still using their limited companies.
This is important. Often, if a contractor wants to use an umbrella company, offshore or onshore, the agency often insists on the contractor using one of the umbrella companies on their Preferred Supplier List.
There is a very good chance that they are taking a bribe for every contractor sent to the umbrella company. That is illegal, however, under the 2010 Bribery act but it still happens.
Different Tax Planning Options
However, if a contractor is using a limited company then there is nothing much the agency can do – and they don’t.
So, the contractor gets no interference from the agency when operating the tax planning through a limited company.
There are different ways that these tax planning solutions work.
They make use, of course, of current UK law to cut the tax bill for contractors.
Here are companies which save contractors lots of money. Moreover, this is by using efficient tax planning using the contractor’s own limited company.
All of these limited company solutions return 84%, or more, of their hard-earned cash to a contractor.
Compare the Umbrella Company Alternative
BestPay have a brand new tax-effective scheme in place which uses your own limited company. This has had a high uptake with contractors. To find out more, fill in the form at Compare the Umbrella Company Alternatives