Hi there,
I'm about to switch from a permenant roll to go contracting and need some advice on what my best option is, ie. limited company or umbrella.
Having read all the advice on these forums and other contracting sites the general feeling I get is that your best option for maximising your income seems to be to go the way of setting up your own limited company.
This is probably the method I would use however I'm only intending to do about 6-9 months contract work before going off travelling for 1 to 2 years.
So what worries me about setting up a limited company is that I'll have to leave someone in charge of the paperwork and pay an accountant to look after it whilst I'm not working and wont be easily contactable
I did contracting before a couple of years ago and used Prosperity 4, but I'm told because of the pre budget report regarding the clampdown on these sort of companies that I could end up paying a lot more in tax than if I went the limited company route.
If it makes any difference, the first contract is for 3 months with the company I'm currently permenant with and I guess this means I will fall victim of IR35 also.
I've read up so much on this and still don't know what my best option is so yout thoughts and advice would be much appreciated.
I'm about to switch from a permenant roll to go contracting and need some advice on what my best option is, ie. limited company or umbrella.
Having read all the advice on these forums and other contracting sites the general feeling I get is that your best option for maximising your income seems to be to go the way of setting up your own limited company.
This is probably the method I would use however I'm only intending to do about 6-9 months contract work before going off travelling for 1 to 2 years.
So what worries me about setting up a limited company is that I'll have to leave someone in charge of the paperwork and pay an accountant to look after it whilst I'm not working and wont be easily contactable
I did contracting before a couple of years ago and used Prosperity 4, but I'm told because of the pre budget report regarding the clampdown on these sort of companies that I could end up paying a lot more in tax than if I went the limited company route.
If it makes any difference, the first contract is for 3 months with the company I'm currently permenant with and I guess this means I will fall victim of IR35 also.
I've read up so much on this and still don't know what my best option is so yout thoughts and advice would be much appreciated.
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