PAYE, Ltd Company and Umbrella Company

There are different ways to be paid in the UK. Your main priority should be to organise your tax contributions in the UK. There are four main choices:

1. PAYE (Pay As You Earn): Both contractors and permanent employees can be paid this way
2. Umbrella Company Structure: 3rd party payroll option where you are taxed with full PAYE but may claim certain expenses to offset your tax
3. Director Based Ltd Co: Suitable for bona-fide subcontractors
4. Sole Trader: Suitable if you are self employed with multiple clients who are willing to pay you without running through a Ltd Co (N.B. Martin Ward Anderson will not pay candidates through this structure, which is more suited to trades people)

The Business Link website has an interactive assessment tool where you can examine which structure will be legal and most appropriate for you to work through. Always seek professional financial advice and refer to the following websites:

• www.direct.gov.uk
• www.hmrc.gov.uk

Click for our "Umbrella or Ltd Company Guide" to help your decision making when choosing providers one of the above and the 'Useful Contacts' summary for providers reccommended and approved by Martin Ward Anderson.

Property of Martin Ward Anderson 2009
Martin Ward Anderson accepts no liability for the accuracy of information contained in the document. We recommend you consult expert financial professionals.