Best Option

Find the right accountancy solution for your requirements

Assumptions for all calculations:

  • All calculators assume that your rate does not change dependent on the structure.
  • All calculators assume that on a daily rate, you will work 260 days within the year.
  • All calculators assume that on a weekly rate you will work 50 weeks within the year.

Limited Company Assumptions:

  • That you will be VAT registered. The VAT registration threshold is £85k, but it may be beneficial to register even if your turnover is below this amount. Please speak to an accountant for more information
  • That your expenses will be roughly 5% of your annual income.
  • That you will withdraw all the funds from the company year on year. Please note that this is not the most tax efficient method of operating through a limited company, and an accountant may advise you to build funds within the company to withdraw when you close.
  • This assumes that your contract is outside of IR35.
  • This assumes no pension payments.

Sole Trader Assumptions:

  • That VAT registration is only applicable when your turnover is in excess of the VAT registration threshold.
  • The Sole Trader expenses are less than those of running a Limited Company.
  • This assumes no pension payments.

Umbrella Assumptions:

  • No Supervision, Direction or Control (SDC) applies on any assignments during the year. As such, no tax is paid on your business cost claims or mileage claims. This doesn’t factor in business expenses (i.e. subscriptions), so you could be due a tax refund at the end of the year if this is applicable.
  • This assumes that the umbrella company will have a payroll over £3m, and as a result, there the 0.5% Apprenticeship Levy included within the employment costs.
  • This assumes no pension payments.