3 month contract caught by IR35.

[one_contract]

Hi all,

I have a 3 month contract that will most likely be caught by IR35. I will have to arrange temporary accomodation for the 3 months as I live too far away at the moment.

There is a high probability that I will not be working again for the (financial) year after the contract has finished.

What is my most tax-efficient route for dealing with this contract?

I'm thinking the PSC route is not worth it for just a 3 month contract. Can anyone make a case for it?

Therefore, the only other option is the umbrella route.

I'm working on the basis that I will be able to claim some/all accomodation expenses as subsistence as I would not be normally living there if it wasn't for this contract, does that sound right?

Currently, what is the cheapest reliable umbrella service on the market for my purposes?

I see all of the usual names, some of which I remember from many years ago.

Who are the most competitive players today?

Sorry, if this is the same as every other post my vision is getting blurred reviewing all of the different umbrella company websites.

Your input is appreciated to help me create a shortlist.

[malvolio]

Most reliable - PCG's QU. Cheapest, haven't got a clue, but Parasol are probably close. Your own company is always the chepaest option, so if you are coming back to contracting you may as well set one up. Otherwise, go brolly, as you suspect.

Living expenses should not be an issue, since they are incurred wholly and exclusively for the business - you wouldn't be there if you didn't have to be.


And remember one thing - there is no such thing as a PSC, that is a soundbite dreamt up by Gay Gordon and has no legal or realistic basis. Don't use it again!

[one_contract]

Thanks for the input, that's one for my list. I was under the impression that QU = Parasol.

Instead of saying "cheapest" I probably should have said: most tax-efficient as a service could be more "expensive" in terms of fees but the net result could be better.

I would go with my own limited company in a heartbeat if it wasn't for the fact that I'm only on a 3 month contract and may very well be in a different country for a couple of years after that.

I would still consider a limited company if there are any recommendations for fully managed arrangements including invoicing my client etc. and speedy set up of company bank account etc.

As for "Personal Service Companies", well, call me a cynic but it sounds like a classic way of Mr.Brown sewing the seeds in the public mind in preparation for further tax attacks on "one man companies" further down the line...but I agree with you. I won't use the term again!

Any others for my short list?

[malvolio]

Just for the sake of clarity, QU is managed by Parasol, but it is a different beast from their standard package.

And I suppose I ought to complete the shameless plug and mention PCG OneStop if you want instant company setups, but that might be over the top for your immediate needs!

Or you could work through my company for 25% of the gross...

[one_contract]

Was just checking out PCG OneStop etc. seems a bit steep to me.

Came across Danbro.co.uk as they are a provider of a PCG OneStop solution.

It seems to have everthing I need. Basically, I control the company and account and they do all of the admin including invoicing etc.

This will set me back £130 p/month or something. Minimum 4 month charge so for my 3 month contract that will be £520 - question is, will this work out cheaper for me overall with a limited company structure compared to a fixed fee umbrella solution....

I'll have to call them up and do the sums.

Anyone else know of any other companies like Danbro that do full company admin with invoicing etc. for less than £130 p/month?