Are LTD companies always the most income friendly way to go?

[NotReallyButSeriously]

I'm currently on my second contract, but have been offered another contract for 6 months, the rate is low (£12-£15 p/h), but I'm not that experienced at the moment and it's piss work (Helpdesk Support).

I'm working through Parasol at the moment and they charge £27.50 per week, or monthly is £119 (I don't understand how they can charge more for a month, rather than 4 weeks).

Anyway, I've been thinking of going into a LTD company, would it be more cash efficient for me. Is it likely to cost me more than an umbrella does at the moment?

[Sockpuppet]

I'm currently on my second contract, but have been offered another contract for 6 months, the rate is low (£12-£15 p/h), but I'm not that experienced at the moment and it's piss work (Helpdesk Support).

I'm working through Parasol at the moment and they charge £27.50 per week, or monthly is £119 (I don't understand how they can charge more for a month, rather than 4 weeks).

Anyway, I've been thinking of going into a LTD company, would it be more cash efficient for me. Is it likely to cost me more than an umbrella does at the moment?

My Accountnt charges £50 a month. Ltd will always out strip Parasol and others like them esp if you get on the flat rate VAT scheme etc.

[NotReallyButSeriously]

My Accountnt charges £50 a month. Ltd will always out strip Parasol and others like them esp if you get on the flat rate VAT scheme etc.

But then do you have to open a business bank account?

[Moscow Mule]

But then do you have to open a business bank account?

You have to do a lot of stuff.

Time to put your research hat on...

[TykeMerc]

You have to do a lot of stuff.

Time to put your research hat on...

Not a LOT of stuff, but certainly more than with an Umbrella and yes you do need a business account.

I'd say that on your rate that while you might see a more tax friendly return with a MyCo Ltd the scale of that would be borderline, you might want to take a look at other umbrella companies as well as looking into accountants and running a Ltd.
Nixon Williams are pretty competitive as accountants go and have given me excellent service but their charge of £75+ VAT per month (£90) isn't exactly a saving on your umbrella fees.

[NotAllThere]

...
I'm working through Parasol at the moment and they charge £27.50 per week, or monthly is £119 (I don't understand how they can charge more for a month, rather than 4 weeks)....

As there aren't 4 weeks in a month, they don't. There are 52 (and a bit) weeks in a year, and 12 months in a year, the yearly rate on the former is £1434.87 and on the latter £1428.00.

I'd always go ltd on the grounds that I have direct control over my income.

[NotReallyButSeriously]

You have to do a lot of stuff.

Time to put your research hat on...

Surely a forum is research, thanks everyone for the replies

@TykeMerc have an accountant lined up that a family member uses, just need to speak to them about it. If I can push this new contract for a higher rate, then I'm definitely going to consider it as I'd like to have more knowledge and experience on it before getting the big contracts through.

@NotAllThere explains it then, it's about 4.3 weeks in a month (silly mistake).

[Waldorf]

@TykeMerc have an accountant lined up that a family member uses, just need to speak to them about it. If I can push this new contract for a higher rate, then I'm definitely going to consider it as I'd like to have more knowledge and experience on it before getting the big contracts through.

Check that the accountant knows about contractors, if they are a high street outfit you may end up paying a fortune.

Ltd will beat umbrellas but brollies are probably better if you are only in it for a limited time or your rate is quite low.

[SallyPlanIT]

You need to ensure your IR35 status before you incorporate a company. Help desk support can (not always) fall inside the rules, so best ask your accountant to check it.

[jmo21]

You need to ensure your IR35 status before you incorporate a company. Help desk support can (not always) fall inside the rules, so best ask your accountant to check it.

Erm....no you don't