Contractor Finance Uk

UK Umbrella Company Explained: How It Works

A UK umbrella company employs contractors as PAYE staff and handles all tax, NI, holiday pay and employer NI deductions. The contractor receives net pay similar to a permanent employee. This guide covers how umbrellas work, the margins, and choosing one.

16 Jun 2026 · 7 min read

UK Limited Company vs Umbrella: Which to Choose

UK contractors choose between operating through their own limited company (PSC) or through an umbrella company employing them. The choice depends on IR35 status, expected take-home, and administration tolerance. This guide compares both routes.

16 Jun 2026 · 10 min read

UK IR35 Rules Explained: Inside vs Outside

UK IR35 determines whether a contractor providing services through an intermediary should be taxed as deemed employed. Chapter 8 (intermediaries) and Chapter 10 (off-payroll) apply different routes. The status determination examines control, substitution and mutuality.

16 Jun 2026 · 9 min read

UK Contractor VAT Registration: When and How

UK contractors must register for VAT once turnover exceeds GBP 90,000 in any rolling 12-month period. The Flat Rate Scheme can simplify accounting. Voluntary registration is also available. This guide covers registration, schemes, and quarterly returns.

7 Jul 2026 · 7 min read

UK Contractor Take-Home: How to Calculate

UK contractor take-home depends on day rate, working days, IR35 status, structure, and pension/expense decisions. This guide walks through the calculation for PSC outside IR35 and umbrella inside IR35, with worked examples at three rates.

16 Jun 2026 · 10 min read

UK Contractor Pension Options: SIPP and Workplace

UK contractors operating through PSCs can make highly tax-efficient employer pension contributions (deductible by company, tax-deferred for director). Umbrella contractors use auto-enrolment or salary sacrifice. This guide covers SIPP, the GBP 60,000 annual allowance, and carry-forward.

17 Jun 2026 · 10 min read

UK Contractor Mortgage: Getting Approved

UK contractor mortgages can be assessed on day rate (specialist lenders) or personal income (mainstream lenders). Specialist contractor mortgages use day rate * 46-48 weeks for affordability, typically supporting larger borrowing. This guide covers the routes and documentation.

16 Jun 2026 · 7 min read

UK Contractor Mileage Claims Through Company

UK contractors can claim 45p per mile for the first 10,000 business miles and 25p above through their PSC. The mileage covers all running costs. Travel to a permanent workplace (24-month rule) is not deductible. This guide covers the process.

16 Jun 2026 · 7 min read

UK Contractor Life Insurance Through Limited Company

UK contractors can hold life insurance personally or through their PSC using Relevant Life Cover - a specific structure where the company pays a tax-deductible premium for cover that benefits the family on death. This guide covers both routes.

16 Jun 2026 · 7 min read

UK Contractor Income Protection Insurance

UK contractor income protection insurance replaces a percentage of income (typically 50-65%) during illness or injury that prevents work. Deferred period typically 1-6 months. Through the PSC the premium can be paid by the company (executive income protection) for tax efficiency.

16 Jun 2026 · 7 min read

UK Contractor Finance: The Complete Guide

UK contractors operate through limited companies (Personal Service Companies), umbrella companies, or as sole traders. IR35 status determines tax treatment. This guide covers the structures, the tax position, and the operational essentials.

16 Jun 2026 · 10 min read

UK Contractor Expense Rules: What's Allowable

UK contractor expenses through a PSC must be wholly, exclusively and necessarily for the business under section 34 ITTOIA 2005 (sole traders) or section 1298 CTA 2009 (companies). This guide covers allowable categories, mileage rules, and home office.

16 Jun 2026 · 7 min read

UK Contractor Dividend Tax: Rates and Thresholds

UK contractor dividends are taxed at 8.75%/33.75%/39.35% above the GBP 500 dividend allowance. Director-shareholders pay personal tax on dividends extracted from the limited company. This guide covers the calculation, stacking with salary, and planning.

16 Jun 2026 · 10 min read

UK Contractor Corporation Tax Basics

UK PSC contractors pay corporation tax at 19% on profits up to GBP 50,000, 25% above GBP 250,000, marginal between. Filed 12 months after year-end; paid 9 months after. This guide covers the calculation, deductions, and key dates.

16 Jun 2026 · 7 min read