Whether you’re just starting out as a contractor or have been contracting for a while, getting the most from your take home pay is likely to be high on your priority list. Choosing the correct trading model for you and your circumstances can mean the difference between the overall taxation liability you’ll suffer on your earnings, and also your employability in certain sectors.
To get the best out of contracting it’s a good idea to select one of the popular trading options that best suits you. Navigating through the options may seem daunting, but the choice you make is likely to have an impact not only on your employability in certain sectors but also the overall taxation liability you suffer on your earnings.
In this guide we explore:
- the four most popular options to choose from (Limited Company, Umbrella, Sole Trader or working through an agency)
- what circumstances each option is generally most appropriate for
- the advantages and disadvantages of each
- how your trading model could affect your overall take home pay
- what’s really involved in each and what’s required from you
- our at-a-glance table will help you understand how they compare to one another in key areas.
Make sure you’re aware of the different trading options available to you and what effect each will have on your take home pay.
Download our full guide: Limited Company or Umbrella – which is the right choice for you to ensure the model you choose is the most rewarding for your contractor salary.