Today we’re going to consider the case of a contractor who is working in the UK and is wanting to consider the tax effects of working as a sole trader, through a limited company, and via a PAYE umbrella company.

I want to use the example to illustrate how a limited company can be used to store income within the company on the basis the contractor does not need the money to live on, and how that money can be finally extracted from the company when it is closed down.

I will use the exact same set of data for all three contractor tax calculator scenarios and lets assume that the contractor is going to be working for three years on various projects. Before I get started though let’s take a look at the three different contracting models and discuss how each might apply to the scenario.

For the full blog article with all the details see;
https://www.no-worries.co.uk/blog/con...