freelance working advice please

[si 330]

I’m making the switch from my staff position to freelance (not with the same company)
I have read on this forum over resent weeks some of the discussions regarding umbrella companies and a limited company.
For simplicity the umbrella company seems an attractive option.
I have had a few illustrations from companies that I have found from the web.
Some of these say I can put expenses in for mileage, lunch if I work more than 5 hrs per day and dinner if more than 10 hrs per day. Other companies say no as it my first contract.

But then as I would like to try develop a small business (planning applications for house extensions etc.) the LTD route would probably be a better option.
The umbrella routes are forecasting around 19% to 21% in tax, NI and fees.
If I was to go for the LTD option what sort of gains would I expect.

As a freelancer I will be getting £26p/h and working around 40p/w with 170 miles per week travel.
If I go with the LTD route I’m a best getting an account to set everything up or use one of the many companies advertising on the web for £50+ and an off the shelve company.

Can anybody recommend an accountant that specialises in freelance contractors?

[Eric Mc]

The key as to whether your own limited company is a valid option is your exposure to IR35.

[si 330]

Thnaks Eric,

I don't fully understand IR35 but from what I have been told
I should be OK, as I would have no benefit in kind,(no sick pay, holidays, pension etc.)
Also would the fact I would be doing small projects for other clients help in that I would not be working within one sole contract and the main contract would be less than 24 months?

[Eric Mc]

All very helpful in avoiding the clutches of IR35.

A well worded contract is the key - as well as ensuring that the details set out in the contract are adhered to on a day to day basis.