Umbrella vs Limited company set up

Our objective is to provide our clients with sound commercial and tax advice and to help them to structure their affairs effectively. We will place emphasis on optimising our clients’ marginal tax rate and have no hidden charges or commission. 

Recent studies at Belsize Accountancy have found that contractors will generate more take home pay by using a Limited Company set up rather than through an umbrella company.

We therefore recommend that our clients seek a Limited Company set up unless they require an umbrella company for  compliance reasons.

Reducing your marginal rate of tax

All of our clients are advised by a team of highly skilled professionals at Belsize Accountancy. We pride ourselves in providing a high standard of service and place emphasis on the marginal rate of tax in order to ensure that we are providing tax efficient solutions to our clients.

Tax Planning: Limited Liability Partnerships

Limited Liability Partnerships (LLP’s) have grown in popularity over the past few years and have become the structure of choice for many wealthy individuals in the UK. The key benefits of LLP’s are as follows:

-Ability to offset business losses against other income

-Increased flexibility, particularly when remunerating various partners in the business. Profit share distributions for example can be easier to allocate than under a Limited Liability Company.

-Ability to obtain tax relief on loan interest.

LLP’s can offer significant opportunities for tax planning and can help to minimise an individual’s tax bill. This structure can be extremely beneficial for start-up companies. So long as individuals are genuinely working in business via an LLP, they will be able to legally offset any losses against other personal income. 

For more information, please contact Belsize Accountancy for a free quotation.