Permanent - Contractor, offered 6 month contract

[heyitsmagnus]

Hi Contractor UK family!

I have recently been offered a 6 month contract, working in the private sector at a day rate of 420. I am moving into a Compliance function.

I have been looking into the different avenues I can go down and have decided to go and set up a LTD company. I have used Gorilla Accountancy, who set up my company and I am now currently in the process of setting up a business account through MetroBank. Additionally, I have purchased all necessary insurance packages (including the Tax Enquiry Insurance for IR35). There might be a chance that this position might get converted into a permanent role after the 6 months but I will have to make an assessment if that's the path I wish to go down, at a later stage.

However, it got me thinking about the IR-35. Is it worth going through all these processes, say setting up a LTD company, setting up a business account if this role does actually fall within the regulation?

Thanks!
M

[doconline]

Hi Contractor UK family!

I have recently been offered a 6 month contract, working in the private sector at a day rate of 420. I am moving into a Compliance function.

I have been looking into the different avenues I can go down and have decided to go and set up a LTD company. I have used Gorilla Accountancy, who set up my company and I am now currently in the process of setting up a business account through MetroBank. Additionally, I have purchased all necessary insurance packages (including the Tax Enquiry Insurance for IR35). There might be a chance that this position might get converted into a permanent role after the 6 months but I will have to make an assessment if that's the path I wish to go down, at a later stage.

However, it got me thinking about the IR-35. Is it worth going through all these processes, say setting up a LTD company, setting up a business account if this role does actually fall within the regulation?

Thanks!
M

Personally I would be getting the contract looked over by QDOS etc to see if it fails, if so, find out whether these are things you can change or not. If not, go with an umbrella, especially for 6 months if you might be converting to a permie. Doesn't make financial sense to spend money on accountancy etc if there is no need. If you stay contracting, set the company up later.

[northernladuk]

Personally I would be getting the contract looked over by QDOS etc to see if it fails, if so, find out whether these are things you can change or not. If not, go with an umbrella, especially for 6 months if you might be converting to a permie. Doesn't make financial sense to spend money on accountancy etc if there is no need. If you stay contracting, set the company up later.

All the above. The fact you know it's contract to perm isn't good from an IR35 perspective and the idea is to avoid an investigation not just cover yourself when it hits. That and the fact you don't know past 6 months makes a strong case for going Umbrella.

QDOS do checks for IR35 and they'll help you negotiate with the agent as well.

Quite a few people, including myself did the umbrella route first. OK it's not quite as efficient but if contracting is for you, you will be doing it for many years and earning a lot of money. A slight hit to start on the right foot will be insignificant in years to come.

[MrButton]

But surely by the sounds of it you’ve done everything so a bit late to be asking?

At this point I think just roll with it and see what happens with your current plan. But get your IR35 review done and read as much as you can on the subject.