Umbrella or Ltd?

we advise which is best for you

Our sister company Carrington Accountancy offers completely unbiased advice to contractors who may need to set-up and run a limited company or who may need to work through an Umbrella Company.

We provide expert services tailored around the client’s individual business needs and their personal aspirations.

Limited Company


  • The most efficient way of working.
  • Claim a wider range of expenses
  • Access to the Flat Rate VAT scheme.
  • You keep complete control of your financial affairs meaning you do not have to risk your money with any third party administrator.
  • Running your own business isn’t difficult; submit spreadsheets to your accountant – just like umbrella time-sheets and expenses.
  • Greater opportunity for tax planning than PAYE Umbrella


  • There is a certain amount of paperwork involved, usually about 10 – 15 minutes per month. Raise your own invoices, make payments & pay your own tax.
  • Can be costly if you contract for a very short period of time, then go back to permanent employment.
  • Not ideal for contracts less than £25k per year.

PAYE Umbrella


  • Very easy to use, you simply enter your timesheet and expense details and wait to be paid.
  • All tax and NI is deducted before you receive your money, so you will have no further taxes to pay.
  • Ideal for short term contracts.
  • Ideal for contracts less than £25k per year.
  • Good if you are unsure if contracting is for you and you’re really just in between permanent jobs.
  • Someone else will be doing all the paperwork.


  • You will receive a salary that is subject to full PAYE Tax and NI, it’s just like being a permanent member of staff again.
  • You are reliant on the umbrella company to collect your money from the client or agent and then to pay it on to you.

Need further help? Speak to one of our experts
Call 0203 713 4530 or email

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