Forced!!! into a GIANT leap of faith

**Sockpuppet** · 16 April 2007, 14:34

http://www.google.co.uk/search?hl=en...G=Search&meta=

**PAG** · 16 April 2007, 14:40

Originally posted by tjs

Hi guys,

I am a newbie to all this and to be honest am totally confused (sorry for the ramble). I have spent a good few days trying to piece all the bits of info from this website together but it really does go a bit above my head.

I am in a sticky position where i need to make a quick descision between either

1) creating a limited company either with an accountant or managed sjd etc

or

2) going through an umbrella company.

I am not really ready to go the limited route today, but also from everything I have read, feel that the limited route is also a bit risky, especially if they suddenly back date all your income for NI and Tax irrespective of if its dividends etc...

Should i go with an umbrella company for a few weeks/months until I can get my head round it all??

Also, does anyone know if Giant are any good. They are asking £28 which seems steep, but for the short term I can handle it as it will give me breathing space to make the right descision.

How many people are backtracking on dividend payments etc? or are people pretty confident that they are untouchable????

Thanks

Thomas

Thomas,

your thinkning is completly wrong. If you are not interested in running your business (i.e open your co) then you need to go PAYE route, period.

**Burdock** · 16 April 2007, 14:47

Hi TJS,

If this is your first contract, I think going Umbrella is a sensible move.

You might like to check out the Umbrella service recommended by the PCG:

http://www.pcg.org.uk/cms/index.php?...361&Itemid=483

Good luck!

**dmini** · 16 April 2007, 14:58

If the thought of being limited scares you that much, then PAYE through an umbrella is a good route. Equally, I would say, if you are not sure that contracting is where you want to be - just a few months filling in - then an umbrella is fine.
I mostly used Contractorumbrella - think they are cheaper generally, before I went limited a year ago. They were very good - staff very efficient, knowledgable & helpful. I can say I NEVER had an issue with them. Agencies now, that's a separate issue. I also have used Parasol and P4

I wouldn't recommend them.

However, if you are going to run as a business, then do it - as Limited! Make sure your contracts are sturctured correctly, as are your working practices. IR35 Insurance exists, you can use it. Many, many people do, through the PCG and win.

Hope that helps

**tjs** · 16 April 2007, 15:12

Its all a load of semantics then!!!

Thanks for all the feedback...

Does this whole topic of pay bascially come down to semantics, how to describe what you do in a way to make your company not seem like their target????

It is very difficult to guage the number of people on here that are scrutinised by the Govmt and also how many are succesfully made to pay up....

Is it still very difficult for the govmt to get you if you do sit outsite the IR35 legislation and have the IR35 insurance??? Does the insurance ususally work?? How many people have the insurance and lost??

These are the important questions...

**malvolio** · 16 April 2007, 16:15

Originally posted by tjs

Thanks for all the feedback...

These are the important questions...

Yes they are. Go with an umbrella, you do not know enough to hack it with your ow company just yet and you understand absolutely nothing about the problems you will face.

Then go read the first time guides here and on the PCG site to get a grip on it all, then ask the questions.

As for win/loss ratios for IR35 investigation, 2000+ cases, three lost (and all three avoidably so). However there are thousands of contractors paying IR35 becuase they don't know enough not to. Don't be one of them.

**zathras** · 18 April 2007, 11:11

Originally posted by tjs

It is very difficult to guage the number of people on here that are scrutinised by the Govmt and also how many are succesfully made to pay up....

Is it still very difficult for the govmt to get you if you do sit outsite the IR35 legislation and have the IR35 insurance??? Does the insurance ususally work?? How many people have the insurance and lost??

You might find joining the PCG helpful.

The government have a very poor record when it comes to forcing people to pay up if they fight their corner. You will not find the PMG admitting it but the answer is out of 1,414 people investigated the total number that have been found within the intermediaries legislation is 3.

These people have been advised by professionals, and more than likely get insurance as well. PCG membership includes insurance with the fee and it kicks in when the Inspector says you are caught. With PCG+ you need never deal with the inspector as the insurance kicks in when they start a PAYE investigation, the traditional way an IR35 investigation starts and you can hand the whole thing over to the professionals. And give a big

to Hector!

**Lewis** · 18 April 2007, 11:29

[QUOTE=zathras]PCG membership includes insurance with the fee and it kicks in when the Inspector says you are caught. With PCG+ you need never deal with the inspector as the insurance kicks in when they start a PAYE investigation[QUOTE]

I think the PCG insurance is through QDOS, for a bit more you can get cover direct from QDOS which is more comprehensive than PCG+ in that it also pays out all back tax, interest and penalties in the event QDOS lose. Whereas PCG+ only pays the penalties.

**zathras** · 18 April 2007, 11:32

You may also find the PCG Onestop Service useful.

PCG OneStop is a new type of membership which enables you to set up a limited company in one easy move with the resources to make sure everything complies with the law and the tax authorities. PCG OneStop saves you time, money and hassle.

Forced!!! into a GIANT leap of faith