Umbrella Company or Limited Company Accountancy?

We provide both services, so are perfectly placed to help you decide which is best for you

If you're just not sure which is best for you - Umbrella or Limited - we can discuss your individual requirements and give you impartial advice about which best suits YOU.

 

We've put together this short guide to give you an outline of the main difference between setting up your own LTD company against using our PAYE Umbrella. This is a guide only and whilst we hope it proves helpful, it wont substitute a good old chat with one of our friendly consultants!

Minimum Period

Is there a minimum period that i need to contract for?

UMB None, although if you only intend to work one assignment through Nasa Umbrella you may not be able to claim expenses

LTD While there are no minimum contract requirements, we suggest that you intend to contract for at least 6 months before going LTD

IR35

Will IR35 apply to me?

UMB IR35 doesn't apply to employees of an umbrella company

LTD IR35 will apply to you but with our assistance through our IR35 appraisal services, you can minimise your exposure by working in the correct way

Insurances

Will i receive business insurance with the service?

UMB Yes, all insurances are included in the admin margin (Employers, Public Liability and PI)

LTD Yes, cover under Nasa Consulting's group policies is available under our £125 + VAT per month package

Earnings

Is there a certain amount i need to earn?

UMB From Apr 2018, any pay rate over £10.00 p/h may see you benefit from using the umbrella company

LTD We recommend contractors earning over approximately £30k p.a and with a minimum contract of 6 months consider a limited company setup, however please contact our sales team for advice and a projection so that we can assist you in getting the most out of your earnings

Earnings

How much of my earnings will i keep after all deductions?

UMB Depending on the pay rate and expenses you claim, you can keep 60-85% of your income

LTD If outside of IR35, then you can keep 70-90% depending on the pay rate and your own circumstances

Payment

What bank account will i receive payment into?

UMB All payments are made directly into your named personal bank account

LTD You will need to open and manage a separate business bank account. Nasa can introduce you to Cater Allen for a fast-tracked account set up as part of your company formation process, otherwise you are free to choose whichever bank you wish

Admin

How much administration will i have to do?

UMB You'll need to upload timesheets to our portal - unless your agency is self-billing. Expenses & receipts will also need to be uploaded to the portal but the process is very simple

LTD A little bit of admin is required which may not suit the more admin averse! Systems are online for bookkeeping (expenses), uploading bank statements & receipts. We would estimate no more than 1-2 hours per month

Expenses

Can i claim expenses to reduce my tax and NIC?

UMB As long as you qualify, you can offset some costs against your tax and NIC - including travel and meals

LTD Yes, all business expenses can be claimed for tax relief as long as valid receipts can be provided

 

Costs

What are the costs?

UMB Weekly margin from just £15.00 per week

LTD Fees start from £99 + VAT per month payable by standing order from your business bank account. There is a one off Company Formation fee of £100 + VAT

Further Tax Savings

Are there any further ways i can reduce my tax liability?

UMB By making pension contributions you can reduce your tax liability further. We also provide childcare vouchers so parents can still benefit from tax relief on these costs whilst using the umbrella company

LTD You can save tax by making pension contributions, following certain drawing strategies and you may also benefit from VAT savings from using the flat rate VAT scheme

Register with us today - it's simple

Umbrella, Limited Company and Outsourced services for contractors, freelancers and agencies

Umbrella and Limited Company services for Contractors

Nasa Group is making the working lives of freelancers and recruitment agencies more comfortable by taking care of their payroll and accounts.

Our clients use us because they always find us efficient, adaptable, helpful and very responsive. Everyone in our team really cares that what we do makes a difference enabling our clients to focus on what is important to them.

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Nasa Group, Tower House, Fairfax Street, Bristol BS1 3BN

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