Umbrella Company & Ltd Company at the same time.

[24772433]

Hi guys,

Is it ok for a contractor to take a role which is umbrella/Paye only while he still pays himself a salary from his Ltd company?

Would it be prudent to just stop paying a salary for the duration of the umbrella contract?, etc?

Thanks,

Steve.

[Maslins]

Is it ok for a contractor to take a role which is umbrella/Paye only while he still pays himself a salary from his Ltd company?

Yes.

Would it be prudent to just stop paying a salary for the duration of the umbrella contract?, etc?

I'd recommend it, yes. Should help you have a cleaner tax code, as otherwise HMRC will see you as having two PAYE jobs at the same time. You can still take dividends, and your company can still do everything else (eg invoice, submit VAT returns etc), you just won't be on the payroll for as long as the umbrella gig lasts.