Here are four points of comparison that you can refer to in deciding which one will work for you:
- Establishment – submitting all the required documents to Companies House allows the incorporation of a limited company. This is even made easier with company formation agencies, and as long as you have the essential documents, you’re good to go. The process is much simpler for an umbrella company because you technically become an ‘employee’ of the provider.
- The money you get – umbrella companies will leave you with some 67 to 76 percent of the value of your contract, whereas a limited company will let you tke home 81-86 percent.
- Authority over the business – despite the challenges of having to shoulder more tasks, you’ll have more control in a limited company. Unlike in in umbrella scheme where, since you are an ‘employee’, you don’t have much say in some company transactions.
- Administration matters – the umbrella company provider will handle all taxation and accounting, while you’re left mostly to yourself and your staff in recording transactions and accounting.
Visit www.unifiedpayroll.co.uk to learn more about the difference between the two and how Unified Payroll cab help you figure out the best business solutions for you.