Request a Personalised Income Illustration

There are pros and cons of working through either an Umbrella Co or a Limited Co. To help you decide what's suitable for you, we've summarised the main advantages and not so advantageous points of each.

Limited Co


  • The most efficient way of working.
  • You can claim a wider range of expenses through your company.
  • Enlisting onto the flat rate VAT scheme potentially reaps further financial benefits.
  • A wider opportunity for tax planning.
  • If you hire Aidhan Accountancy all your paperwork and compliance is dealt with. All you need to do is spend around 1 hour per quarter inputting data.

Not so Advantageous

  • Not ideal for short term contracts of less than 6 months or less than £20k p.a.
  • IR35 is a risk but can be mitigated with the right advice. We can assist with this.
Request a free personal income 
      illustration by submitting the form

PAYE Umbrella Co


  • Ideal for short term contracts or those less than £20k p.a.
  • It's a good temporary solution whilst you decide whether longer term contracting/freelancing is for you or not.
  • All your paperwork is dealth with by the Umbrella Co although you will still need to spend time every week/month inputting data.

Not so Advantageous

  • The most expensive way of working. Working through an Umbrella Co is like being taxed as a permanent employee.
  • You will suffer employers NI at 13.8% and employees NI at 12.8% in addition to income tax.
  • You are reliant on the Umbrella Co to collect your money from the client or agent and then to pay it on to you.

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0203 368 3173