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Limited company FAQs

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Limited company FAQs

Limited company FAQs

How much can I take home as a contractor?

Firstly, how much you earn as a contractor depends on how you decide to operate, either as a limited or an umbrella company or other type such as PAYE through an agency. If you work through a limited company then whether you are inside or outside of IR35 will also have an impact as it affects some of the expenses you can claim to offset against your tax. Limited company contractors can take home around 75-80% of their contract value when compared to umbrella company contractors who are entitled to around 60-65% of their take home pay.

Working through an umbrella company and going through an agencies PAYE are now more similar than ever since the ability to claim travel and subsistence was removed for umbrella contractors who operate under supervision, direction and control. For both options you operate and are taxed as an employee and claim any eligible expenses at the end of the year.

The take home pay is higher through a limited company because there are tax efficiencies available around the expenses you can offset. The take home pay further varies depending on which industry you are working in, the company you work for and your skill set.

Which working option is best for me - Limited company or Umbrella company?

Is running a limited company difficult?

How to switch from umbrella to limited?

What expenses can I claim?

What is IR35 legislation?

What is deemed employment payment?

What is the VAT threshold for a limited company?

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