IT contracting, self employed or umbrella company ?
Discussion
self employed isnt really an option - none of the agencies will touch you and you'll have trouble going direct because clients will worry about paye liability.
So your real options are brolly or ltd. Ltd is (imo) always the best option, but as a first timer you might want to think about using a brolly for your first contract. They'll take a cut and you will automatically pay tax as if you were an employee but it takes the complexity of running a ltd out when you may be getting to grips with quite a few other issues.
Be very careful about any proposed scheme to save tax.
Go look at the PCG web site and read their introduction to contracting guides. You may want to look at contractoruk as well for some useful advice in the business and accounting sections and banter and abuse in the general and light relief areas.
So your real options are brolly or ltd. Ltd is (imo) always the best option, but as a first timer you might want to think about using a brolly for your first contract. They'll take a cut and you will automatically pay tax as if you were an employee but it takes the complexity of running a ltd out when you may be getting to grips with quite a few other issues.
Be very careful about any proposed scheme to save tax.
Go look at the PCG web site and read their introduction to contracting guides. You may want to look at contractoruk as well for some useful advice in the business and accounting sections and banter and abuse in the general and light relief areas.
Sorry, I did mean ltd or umbrella, so title didn't say it all !!
Have looked at PCG and contractoruk, thanks. As you say, I think umbrella is probably going to be best for the first time, from the small amount of reading so far there seems to be so many to choose from and such a lot of difference between them. Lots more research required I think. Can anyone recommend any good umbrella firms ?
Have looked at PCG and contractoruk, thanks. As you say, I think umbrella is probably going to be best for the first time, from the small amount of reading so far there seems to be so many to choose from and such a lot of difference between them. Lots more research required I think. Can anyone recommend any good umbrella firms ?
Nothing wrong with setting up my own company, I'm sure I could do it. It's just that if I take this particular contract (if it happens), it's only for 6 months, afterwards, if I decide contracting isn't for me and I want a permanent role again, will it have been worth it for such a short time ?
Over such a short period are my own company costs for the set up fee/insurance/accountant still likely to come out cheaper than umbrella fees ?
IR35 - it appears that you have to be really careful on contract wording, so presumably best to employ someone to check, incurring more costs I suppose ?
Over such a short period are my own company costs for the set up fee/insurance/accountant still likely to come out cheaper than umbrella fees ?
IR35 - it appears that you have to be really careful on contract wording, so presumably best to employ someone to check, incurring more costs I suppose ?
Watch out for minimum fees and terms from brolly companies.
I would go ltd. If its a straightforward bos (bum on seat) contract then you'll have fairly minimal paperwork, may not even have to register for vat if only a short contract (although if you are going to buy kit then it may be worth while, but then also look at the fixed rate scheme).
Running a paye scheme is straightforward. If you use an accountant then find one that you get on with. SJD were always popular but they have grown into quite a large concern now so not sure how they stand these days. I would ask for recommendations on pcg and cuk.
B&C or accountax do ir35 reviews. PCG offers insurance (against investigation).
Caunce O'Hara do PI/PL etc.
Do lots of reading on those sites and see what you think.
I would go ltd. If its a straightforward bos (bum on seat) contract then you'll have fairly minimal paperwork, may not even have to register for vat if only a short contract (although if you are going to buy kit then it may be worth while, but then also look at the fixed rate scheme).
Running a paye scheme is straightforward. If you use an accountant then find one that you get on with. SJD were always popular but they have grown into quite a large concern now so not sure how they stand these days. I would ask for recommendations on pcg and cuk.
B&C or accountax do ir35 reviews. PCG offers insurance (against investigation).
Caunce O'Hara do PI/PL etc.
Do lots of reading on those sites and see what you think.
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