Limited or Umbrella?

With SG you don’t have to choose.

Limited + Umbrella + Advice = £49.50

Which business model?

If you’re planning on contacting for 6 months or more, and you’re going to be earning more than £35,000 per year, the most tax efficient set-up for you will be to set up a Limited Company. You can pay yourself a combination of salary and dividends to ensure you’re more tax efficient. There’s also a lot more flexibility in the way that you can manage your expenses. If you travel or eat out while on business, some or all of this expenditure can be claimed back. Even the tools that help you to do your job can be bought through your limited company to further maximise its profitability.

Working through an umbrella company tends to be for those contracting for only a short period, or if you’re not sure that contracting is a long term thing for you. Simple, right?

The IR35 factor

Regardless of the length of your contracting career, or level of earnings, you may find yourself having to work through an umbrella company for some contracts, due to the IR35 status determined by the end client.

IR35 (also known as Intermediaries Legislation) is legislation created to identify individuals falsely establishing limited companies to take advantage of the tax benefits of the business model. This is often referred to as “disguised employment”. There are a number of rules that aim to determine whether your contract falls inside or outside of IR35. If your contract is ‘inside’ IR35, you will be taxed in a similar way to if you were a permanent employee – either via your client’s payroll or through an Umbrella Company. If your contract is ‘outside’ the legislation, you would be able to work through your limited company and pay yourself in a more tax efficient fashion.

With IR35 determinations in the hands of end hirers, even long-term Limited contractors generally need the flexibility to switch between umbrella and limited for different contracts.

SG Contractor Accounting –
Limited with integrated Umbrella

With SG Contractor Accounting, you don’t need to choose between the two – when you sign up, you get both Limited and Umbrella, with the ability to switch between the two seamlessly depending on the contract you’re working on. There are no additional fees, and keeping your Umbrella and Limited in one place means we have a holistic view of your finances, more effectively advising you on tax efficiencies and longer term financial planning.

What you get with
SG Contractor Accounting

Value for Money £99

  • All-inclusive monthly fee

  • Limited and Umbrella included

  • Unlimited advice from your personal accountant

  • No set-up fees, tie-in periods or leaving fees

Advice icon

Advice that saves ££

  • Tax advice to ensure you keep more of your money

  • Save on pensions through your Limited Company

  • Cost-effectively replicate employee benefits with professional financial advice

SG Umbrella logo

Umbrella AND Limited

  • SG Umbrella included in all packages

  • Switch seamlessly between Ltd and Umbrella

  • One holistic view of your accounts

Sign up Online

Complete our sign-up form and get on board with SG Umbrella in next to no time.

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