This calculator works out your tax liability according to the business structure you choose to trade under (limited or umbrella company).
How to use the calculator
Simply enter your details to calculate how much tax you pay if you work via a) a limited company vs. b) an umbrella company for the 2024/25 tax year.
For the sake of simplicity, the calculator assumes you work a 5-day week, for 44 weeks per year.
Read our popular guide – umbrella vs. limited company – to see the pros and cons of each business structure.
Scroll down to read our notes and further assumptions.
2024/25 Umbrella vs. Limited Company Calculator
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Assumptions used in the calculator
The calculator:
- Assumes that your contract work is not caught by the IR35 legislation.
- ‘Annual Travel Expenses’ cover any travel, subsistence and accommodation costs incurred for your contract, falling within the HMRC Travel Rules for site-based employees. You can claim further expenses if you work via a limited company, which will lower your Corporation Tax bill further.
- Pension contributions must be to Approved Schemes paid via your limited company/umbrella company.
- Does not take National Minimum Wage and Holiday pay entitlement into account if expenses exceed those allowable for the stated income level.
- Ignores Pay Between Assignment and Agency Workers Regulation (AWR) implications/obligations.
- Ignores Value Added Tax (VAT).
- Ignores the effect of the Annual Employment Allowance (£5,000) on the limited company column (impact is minimal for most contractors).
- Incorporates the April 2023 rise in Corporation Tax rates. Your company pays more CT than previously if it generates annual profits of £50,000 or more.
Further Information
Aside from the total tax liability, there are several other differences between the two trading structures. Read our Limited / Umbrella comparison tables for the pros and cons of each.
Different income tax bands and rates apply if you live in Scotland, so your total tax bill may differ from that displayed above.
All calculations have been verified by our ACA-qualified accountant.