As a contractor, you must pay tax on the profits you generate from your contract work. I
If you are an umbrella worker, you are an ’employee’, and your umbrella company will calculate and deduct and tax from your income. You won’t have to submit any additional paperwork unless you have any untaxed income outside of your umbrella earnings.
As a limited company contractor, you are responsible for calculating the tax your business owes and paying any liabilities to HMRC on time.
Most limited contractors outsource these tasks to their accountants, however, you should be aware of how business tax works in practice.
Here are some of our most popular limited company tax guides.
