Umbrella or your own company?

[JohnWap]

Hi, I’m about to start a short term contract. In fact, I have not been earning for last three years. Due to IR35, I’m not sure if I’m going to open up a new company this time – things have changed so much. What’s your suggestion? If umbrella, do you have a good one to recommend?

Thanks.

JW

[planetit]

Do you think you will be contracting for a few years, or just a few months?

If just a few months then go for an umbrella.

If you think you’ll be at it for a while, consider a Ltd Company. If you think you might be outside IR35 (a difficult thing for you to know I admit) or may have an interest in doing other bits of work, then definitely go for a Ltd.

If you think you may be inside IR35 then it’s a closer call, but it still seems to be better to go for a Ltd.

[4Contractors]

following on from what planetit has written, the usual accepted advice is to use an umbrella company for a one-off contract of six months or less and an accountant/Ltd for everything else.