Umbrella Or Ltd as Contractor

[PaulG40]

Evening All,

Just after a little advice with regards to my best options with being a contractor in aviation, I've recently left the RAF so this is all a little new to me.

I'm currently working for a umbrella company as an employee but am looking at going to Ltd, as I feel it would have more benefits, rather then as en employee of the umbrella.

Could someone with knowledge of this area please give me some advice about being Ltd and the advantages and disadvantages? Also should I go with a contractor specific or a local one?

If anyone could recommend any as well that great :-)

Thanks,

Paul

[red_slr]

Its all about your personal situation. The general rule is LTD is better, but not for everyone all the time.

Its a good idea to seek pro advice.

[MagicalTrevor]

One rule of thumb is that if you're planning on contracting for a short period and then going back into permanent employment then Umbrella might be more convenient. If this is a long term plan then Ltd Company is likely to be better.

[sideways sid]

This has been asked many times. If you look back through the forums you'll find good advice.

Running through an UmbrellaCo, you have none of the advantages of being a permanent employee, and almost none of the advantages of being self-employed.

Unless you plan on returning to permanent employment, its usually better to go through your own LtdCo, with a decent accountant on hand to do your accounts, tax and admin.

[red_slr]

If you go LTD make sure you keep well on top of your dates for things like CT600, SA302, VAT returns, tax due dates, NIC etc.

Also the more accounting you do at home will save you time (thus money) with your accountant.
I was a simple case, one sales invoice per month. Maybe 5-10 purchase invoices a month plus mileage.

If you are staying in hotels a lot and invoicing for each job etc then you need to put some time to one side each week to sort it all.

Also, make sure you go on the right VAT scheme...

[fflyingdog]

I'm a contractor ,(licensed engineer)for well over 20 years ,you will find an awful lot of agencies will not pay you as a one man band Ltd company, now a days they seem to prefer Paye.I work mostly for American companies and am self employed on a sole trader basis.Running your own Ltd company can be a monumental PITA with out the help of a good knowledgeable accountant if you want to PM me i can point you in the right direction of an accountant who has looked after me and several colleagues in our area of aviation for a substantial number of years.