DNS-Accountants

Using Umbrella Looking For Better Return
Better Return

Return: Ltd Company Vs Umbrella Company

Rate* DNS Ltd Company Avg Contractor Returns % Umbrella Avg Contractor Returns %
£25 per hour 83-85 65-68
£30 per hour 82-83 64-66
£25 per hour 83-85 65-68
£300 per day 79-80 63-65
£400 per day 74-75 62-64
£500 per day 71-72 61-63
£750 per day 67-70 60-62

Looking at the table above, it is clear that working through an umbrella company does not deliver the best returns. DNS advise contractors to work through an umbrella company only if they intend to be contracting for less than three months and if, when that contract comes to an end, they have no intention of continuing as a contractor. Yes, in those circumstances it may be acceptable to use an umbrella company, but otherwise the umbrella solution is akin to throwing away your hard-earned cash.

  • Why a limited company over an umbrella company?
  • How does the DNS limited company solution work?
  • How does a Limited Company Work? A step-by-step guide

It should be clear to you by now that the DNS limited company solution offers a hassle-free choice that will not involve you taking on any more administrative work than you do already working through an umbrella company. The limited company solution will not involve you sending receipts to us either weekly or monthly and, therefore, saves you extra work and time. It is of course fully compliant, so you need not worry about the any of the legalities of this solution.

  • Still not sure which route to go? Why not check this special article
  • Ok, all fine so far, but what about IR35? I am quite worried
  • What are my duties as a director?
  • How do I get paid?
  • What expenses can I claim?
  • What Insurance policies should a limited company have in place?
  • Should I register for VAT?
  • How to select the right accountant

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Get the best advice on tax savings, accounting services, payroll, self assessment, VAT and more, whether you want to call us directly, request a call back or chat online with our experts, rest assured that we will always give you the best advice.If you have any questions, or would like to speak to us in person, please do get in touch. We're here to help.

Head Office:

DNS Accountants
DNS House, 382 Kenton Road,
Harrow, Middlesex, HA3 8DP

Contact Number:

0333 060 2437

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