Moving from permie to contractor - unbrella companies?

[Targarama]

I may be going contracting shortly. All this will probably happen at short notice (long story, partly because I'm heading out on vacation when I should be sorting things out - pre-booked). I have been recommended various unbrella companies for handling the PAYE related stuff. Since I'm probably going to jump into this quite quickly if it happens, if PHers have any recommendations and ideas on what rates I should be paying for these types of companies I'd be grateful.

These are the companies recommended by the agency:

www.giantgroup.com
www.parasolgroup.co.uk
and another called 360 Group

The initial contact I'm looking at is 8 months minimum apparently.

Thanks.

[Eric Mc]

How exposed will you be to IR35?

[BlueProp]

I used GiantGroup for a couple of years, personally I would stay away from them due to an NI issue they may have....

Why not go the Ltd Company route. I did about a year ago and it's far more tax efficient with only a small amount of extra work.

I use an accountant for my returns etc.

As has been said, IR35 could be an issue so ensure you have liability insurance, and no perks from your employer.

[Eric Mc]

BlueProp said:

I used GiantGroup for a couple of years, personally I would stay away from them due to an NI issue they may have....

Why not go the Ltd Company route. I did about a year ago and it's far more tax efficient with only a small amount of extra work.

I use an accountant for my returns etc.

As has been said, IR35 could be an issue so ensure you have liability insurance, and no perks from your employer.

IR35 covers a bit more than those two points.

[Mx_Stu]

I'm not a contractor so have had no need to use an umbrella company, however I understand that my old boss (big 4 employment tax director and prior to that a HMRC inspector of taxes) now works for http://www.tarpon-uk.com/ overseeing all their employment tax bits and bobs.

[BlueProp]

Eric Mc said:

BlueProp said:

I used GiantGroup for a couple of years, personally I would stay away from them due to an NI issue they may have....

Why not go the Ltd Company route. I did about a year ago and it's far more tax efficient with only a small amount of extra work.

I use an accountant for my returns etc.

As has been said, IR35 could be an issue so ensure you have liability insurance, and no perks from your employer.

IR35 covers a bit more than those two points.

Certainly does, just listing a couple.

[Teixe]

Use your own limited company, this coming from a contractor under an umbrella.
I am unfortunately caught by the IR35 so I am not able to go the limited company way.

[Targarama]

You guys have given me a headache. I'd better go and read up on IR35. I don't mind creating my own limited company, just wondered since there is a short timeframe and the probability I may not be contracting forever...

Thanks though...

Edited by Targarama on Monday 20th September 14:20

[Podie]

Have a look on Amazon for "Contractors' Handbook: The Expert Guide for UK Contractors and Freelancers" - worth a read.

Personally, I used an accountant to set up a Ltd Company.

[Dupont666]

Podie said:

Have a look on Amazon for "Contractors' Handbook: The Expert Guide for UK Contractors and Freelancers" - worth a read.

Personally, I used an accountant to set up a Ltd Company.

same here, its all about what you are doing. Are you working for the company in question or for an agent and also many will quote the dragonfly incident but remember those that have been done over by IR35 are few and far between, I think less than double figures have been charged and for gods sake do not do IOM or the Montpellier scheme otherwise you will get done.

If you PM my accountant can talk you through it and tell you the options and which one to go for and if whether you use him or another accountant/tax adviser (he is both)...

[Mojocvh]

I worked alongside a bloke who had been bankrupted TWICE by HMRC over IR35 and this was a industry so far removed from IT it was "normal".

Two homes repossessed, so much st, all to do with IR35.

It's a MUGS game.

[BlueProp]

Targarama said:

You guys have given me a headache. I'd better go and read up on IR35. I don't mind creating my own limited company, just wondered since there is a short timeframe and the probability I may not be contracting forever...

Thanks though...

Edited by Targarama on Monday 20th September 14:20

IIRC it takes a couple of hours to set up your company. If you're confident you're contract is outside of IR35 then it really is the only way to go.

Good luck.