This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Contractor inside IR35 - why set up a limited company?

Posts: 3
Joined: Wed Aug 06, 2008 3:15 pm

Postby ironman » Mon Dec 27, 2004 3:17 pm

I am a UK resident working from home for a US company.

I understand that with a limited company I am liable for tax breaks... but the employer's NI contribution seems to be more than any tax breaks I can claim.

Is there really any benefit to me starting up a limited company, or working through an umbrella limited company? Or am I missing something?


Posts: 567
Joined: Wed Aug 06, 2008 3:13 pm
Location: Basingstoke

Postby cranleys » Tue Jan 04, 2005 4:20 am


The Limited company with IR35 will still enable you to make tax breaks including the NIC and 5% allowance for training. Usual expenses are also permitted. An umbrella company will also give you admin benefits.


Return to “Income Tax”