PDA

View Full Version : Company formation after short term gig



Seasider
5th December 2018, 22:27
Evening all,

Got made redundant from a permie role a few months back and picked up a short two week contract, while looking for another role. Have now landed a three month contract elsewhere so am going to give contracting a proper shot and set up a limited company.

Two week gig has just ended today, I signed up with an umbrella company to get paid through. Ive not submitted timesheets with my agents yet, so was wondering could I cancel my arrangement with umbrella firm and invoice the agency who got me the two weeker via my 'yet to be formed ltd'? My concern is that obviously, when I did the work, 'yet to be formed ltd' didn't exisit so is this dodgy?

Or should I just stick to the original agreement with umbrella and pay more tax, etc? Any advice would be gratefully received.

TwoWolves
5th December 2018, 23:50
Get an accountant.

northernladuk
5th December 2018, 23:54
Personally I'd finish the gig with the umbrella and get the LTD ready for the extension. You won't be losing a lot more and can use the LTD to balance it out later I.e. Don't pay yourself a salary etc.

I'd be very surprised if the agent will bugger about re writing the contract to include the limited and the pay money done under a different contract to the new one. Its gonna push his risk up for no benefit to the agent whatsoever.

There is also the handcuff with the brolly possibly.

Contracting can be a very long and lucrative career. A few months under a brolly will be absolute peanuts to you. In a years time you will have forgotten about it and in 5—10 years it will be irrelevant. Keep it nice and clean and think longer term.

Hobosapien
6th December 2018, 08:51
No way will your existing contract between agency and brolly be transferable and for two weeks not worth the hassle.

Other thing to bear in mind is that benefits of contracting via Ltd vs brolly depends on IR35 status. If inside IR35 then no significant advantage using Ltd over brolly, and significant disadvantages such as all the hassle of running a Ltd if not used for anything other than contracting. The picture is also likely to swing further towards brollies in future, particularly for private sector, but that is all to be finalised and still up in the air.

Seasider
6th December 2018, 09:11
Personally I'd finish the gig with the umbrella and get the LTD ready for the extension. You won't be losing a lot more and can use the LTD to balance it out later I.e. Don't pay yourself a salary etc.

I'd be very surprised if the agent will bugger about re writing the contract to include the limited and the pay money done under a different contract to the new one. Its gonna push his risk up for no benefit to the agent whatsoever.

There is also the handcuff with the brolly possibly.

Contracting can be a very long and lucrative career. A few months under a brolly will be absolute peanuts to you. In a years time you will have forgotten about it and in 5—10 years it will be irrelevant. Keep it nice and clean and think longer term.

Yes I think you are right, plus like you sat not worth the hassle, thanks for the advice!