Using an Umbrella Company Service vs. Forming a Limited Company

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Let's look first at what you typically have to do if you form your own company:

• You pay an accountant to do your detailed accounts and VAT
• You submit accurate corporation tax returns, and pay against them
• You keep Companies House informed of your legal affairs via various forms and returns
• You issue invoices and maintain Receivables
• You set up and maintain separate company bank account(s)
• You observe statutory timelines and calendars in compiling documents and returns
• You declare any dividends received (more forms) to HMRC and pay tax due on these, plus estimated amounts against what you might earn during the following year.
• You have to wind down the company again if things don't go as planned
• and more ...

You might manage higher after-tax returns as a company director, compared to an employee, but as you can see, it does not come free of time or cost.

Now compare the benefit of working within the Drole umbrella service:

• You can still claim every legitimate business expense as a contractor
• All your employment tax and national insurance requirements are handled for you
• Regular invoices are raised on your behalf - just send us your hours worked
• Professional Indemnity, Public Liability, and Employment insurance at our cost, not yours
• No worries about government legislation such as IR35
• You concentrate on building your career and raising your market rates
• You have the benefit of employee status if you're applying for a loan or mortgage
• The Drole umbrella company was built by IT contractors (we are the No.1 longest-serving UK-based umbrella, so you know that we know the contracting business.
• You have the peace of mind of knowing that hundreds of other IT contractors have signed up with Drole, with some staying for 5, 10, and even 15+ years