How A PAYE Umbrella Company Differs Significantly From A Limited Company

by David Jenyns on January 3, 2012

If you have multiple income streams that lead on to a complicated financial situation, then running your business thru a limited company seems the wiser choice. Nonetheless if you are a regular contractor making money by contracting, a limited company will put additional burden on you leaving you no room to breath. You'll also see a rise in your costs since limited company will need hiring new staff for handling company affairs, tax affairs and administration affairs.

When you start a limited company to run your business, you become director of your own firms. This adds new responsibilities that may cause cramping you even farther leaving no time for work. You will have to address the Companies House providing all the info as a director of the company. This increased responsibility may bring down your work quality and you'll never have sufficient time to enhance your skills again.

On the other hand, umbrella companyguarantees you are free from all of these burdens since handling all of the affairs without cramping up for time. You'll have complete confidence while the umbrella service supplier will take all the responsibility for admin and management jobs.

An umbrella company will ensure that you do not have to stress about payroll management, cost claims and meeting the tax obligations. The company will take care of all of these issues and it'll leave you with just one thing on your mind- to enhance your work talents and earn more cash from contracting.

With umbrella company, you get complete rights of an employee since you become an employee of the company. You may enjoy all the advantages of employment but you may continue to work as an independent contractor enjoying the ultimate pliability and high earnings. Just be sure that you pick a top umbrella company to enjoy all of these benefits uninterrupted.

Greg Dickson is head of selling for the Bedouin Group, one of the leading providers of umbrella company solutions for contractors and consultants. Bedouin Cash also provides contractor payroll and contractor pensions.

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