Hi All,
Firstly - long time lurker and appreciate all the advice provided on here by you lovely people. Always a good laugh reading some of the replies too.
I wouldn't consider myself a full time contractor and tend to pick up occasional contracts when convenient or involve a project that interests me. When "on the bench" I just knuckle down and study as I hope to move away from the general IT engineer/SysAdmin field in the near future (working on a self taught programming track that I hope to pursue into a permie role in the next 4 or 5 months from now)
I'm about to finish up a project with a client that I'm currently operating under an umbrella with. I'm operating outside of IR35 and on a rate of £250 p/d. Despite this ending soon they are keen to book me in for another 6 week stint in the new year to work on a completely separate project - again outside of IR35. This will be my last contract with them and will potentially be my last contract for quite some time.
My question is should I go Ltd even if for such a short contract? Will the costs of registering a company and hiring an accountant for 2 months be worthwhile? My current Umbrella is Parasol and they suggest that swapping from Umbrella to their Ltd accountancy I could see close to £200 more per week. Is this at all possible? I would assume I have the full Dividend allowance available to me, which would then reset again in April so I could potentially take that 6 weeks pay home tax free if I take some before April and some after? or must I first pay a salary as a director?
Hopefully this is clear enough, any questions I'll be happy to answer.
Thanks
Firstly - long time lurker and appreciate all the advice provided on here by you lovely people. Always a good laugh reading some of the replies too.
I wouldn't consider myself a full time contractor and tend to pick up occasional contracts when convenient or involve a project that interests me. When "on the bench" I just knuckle down and study as I hope to move away from the general IT engineer/SysAdmin field in the near future (working on a self taught programming track that I hope to pursue into a permie role in the next 4 or 5 months from now)
I'm about to finish up a project with a client that I'm currently operating under an umbrella with. I'm operating outside of IR35 and on a rate of £250 p/d. Despite this ending soon they are keen to book me in for another 6 week stint in the new year to work on a completely separate project - again outside of IR35. This will be my last contract with them and will potentially be my last contract for quite some time.
My question is should I go Ltd even if for such a short contract? Will the costs of registering a company and hiring an accountant for 2 months be worthwhile? My current Umbrella is Parasol and they suggest that swapping from Umbrella to their Ltd accountancy I could see close to £200 more per week. Is this at all possible? I would assume I have the full Dividend allowance available to me, which would then reset again in April so I could potentially take that 6 weeks pay home tax free if I take some before April and some after? or must I first pay a salary as a director?
Hopefully this is clear enough, any questions I'll be happy to answer.
Thanks
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