New to contracting - umbrella or limited company? New to contracting - umbrella or limited company?
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  1. #1

    Nervous Newbie


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    Default New to contracting - umbrella or limited company?

    Hi all,

    Recently found myself a contracting position and I have signed up under an umbrella company as the position came about suddenly.
    Anyhow I was reading some information on some website saying it is best to set up your own limited company if you earn more than £25.000pa. Currently I am earning £27.00 per hour and the contract is for 7 months.
    After this date I would like to continue in the conrracting world but wanted to get some advise as to whether or not I should stick with the umbrella for the duration of the contract or look to set up my own limited company asap.

    Many thanks.
    djj

  2. #2

    Contractor Among Contractors


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    At your rate it is certainly worth setting up a limited company, yes there is more work but the rewards are far bigger.

    Speak to an accountant, I use Nixon Williams and I think they still set up a company for you free of charge, speak to them they are very helpful.

    Umbrella's are probably going to become even less rewarding after new regulations come in later this year.

  3. #3

    My post count is Majestic

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    You could of course read the sticky that is dedicated to this exact question and have a look at the guides on the right.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

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    Greg@CapitalCity's Avatar
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    Based on your rate and contract duration, a ltd company may suit you best (from a tax perspective you will be much better off going ltd). There are other considerations as well before you dive into using your own ltd company, but on the face of it, its certainly worth exploring further.

    And they are quick to set-up these days - 2-24hrs for the ltd company, and 1-10 working days for the business bank account (depending on the bank you choose).

    Good luck.

  5. #5

    Umbrella Queen

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    At your rate it is certainly worth setting up a limited company, yes there is more work but the rewards are far bigger.

    Speak to an accountant, I use Nixon Williams and I think they still set up a company for you free of charge, speak to them they are very helpful.

    Umbrella's are probably going to become even less rewarding after new regulations come in later this year.

    What makes you say that Waldorf??
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  6. #6

    Contractor Among Contractors


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    Quote Originally Posted by GregCapitalCity View Post
    Based on your rate and contract duration, a ltd company may suit you best (from a tax perspective you will be much better off going ltd). There are other considerations as well before you dive into using your own ltd company, but on the face of it, its certainly worth exploring further.

    And they are quick to set-up these days - 2-24hrs for the ltd company, and 1-10 working days for the business bank account (depending on the bank you choose).

    Good luck.
    Also VAT registration seems to be <1 week. A friend submitted a new registration on Wednesday last week and got his registration certificate in the post today.

  7. #7

    Nervous Newbie


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    Thanks to everyone who has replied to my query - the setting up of my own Ltd company is the best option.

    Warmest regards

    djj

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