IT Contracting

[Manc Dwarf]

Looking for some help/advice here. I am looking for my next career move and am thinking about going into IT Contracting. After checking out some websites the options available to me do not seem that simple or straight forward - well maybe they are but I am not well enough informed to make a proper decision about it!

It looks like I can either:
1. Set up my own company
2. Work under an 'Umbrella' company
3. Get paid via an agency.

Are there other options? Can anyone help on what is the best thing to do? I know tax and NI will come into it and I am looking for a balance of what is easiest to do against what is most tax efficient.

Thanks in advance.

Paul.

[ewenm]

I started off with an umbrella company - very easy but you get less take home. I now work through my own limited company with an good accountant to be as tax efficient as possible. If it's a long term change, I'd definitely go the ltd route. The admin isn't too bad and with a good accountant you can minimise your tax bills.

[Arese]

I agree with Ewen. Set up a Ltd using someone like Company Wizard (I am in no way affiliated with these people, but used them to set my Ltd up 5 years ago. There are other company formation methods available!).

If you can put a couple of hours aside each month to keep your books up-to-date (a spreadsheet will do) and get a decent accountant, it's the best thing to do. In my opinion.

[mbrain]

I started contracting a few years ago and used an umbrella for far too long!

Definitely go the Ltd route, and use a good accountant.

Good luck!