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Find the right accountancy solution for your requirements

Organising your personal finances if you’re self-employed can be difficult. Unlike employees, you don’t get a simple, clean wage that drops into your account every month with all taxes already deducted. Instead, you’ll have to think about putting money aside for tax, insurance, and other business costs (for a comprehensive list of the costs you’ll need to consider when self-employed, check our guide here); you’ll have to think about expenses and deductions; and you’ll need to plan your finances effectively.

With all that to consider, personal budgeting can feel like an uphill struggle. We’re here to help. Below, you’ll find our guide to calculating your take-home pay along with a handy reference guide to the different ways that you can operate your business.

 

Limited company contractor calculator
What do we mean by a limited company? At its most basic, a limited company allows your business to operate as a separate legal entity—that means assets and liabilities are separate from your personal finances, too.

When setting up your own limited company, you will become a director and shareholder. Being a director brings certain responsibilities including overseeing all financial and legal decisions. You can be paid a salary and through dividends from the company, and you must make sure that the company files annual accounts with Companies House and HMRC.

Want to calculate your take-home pay as a limited company director? Check out our calculator here.

 

Sole trader take-home pay calculator
As a sole trader, you’ll own and run your business as an individual and you’re personally responsible for any losses the business might make. You can keep all of your business’s profits after tax, and you have some legal obligations around business names and self-assessment for tax.

If you need to calculate your take-home pay as a sole trader, we have a calculator right here.

 

Umbrella take-home pay calculator
Umbrella companies are businesses that act as a go-between for contractors, employment agencies, and end clients. If you work for an umbrella company, you’re their employee and they’ll deal with the majority of your admin—in particular around tax. Generally speaking, the umbrella company will collect your income, deduct the relevant tax and National Insurance contributions, take out their fee, and then pay you the remainder.

If you’d like to explore what kind of take-home pay you’d be getting if you went through an umbrella company, check out our calculator here.

 

Have you found this guide useful? Then check out our full list of completely free resources, here.

 

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