Hi - I’m new to all this so please excuse any ignorance on my part.
Having read simonsjdaccountancy’s very useful sticky and other related forums, I'm still unsure which option is best for me.
For me (and most others entering the contractor market I guess) the initial choice of whether to go down the Umbrella or Ltd Co route is based on my expected IR35 status and which option will net me the best overall returns for my initial contract.
While the average contract length may be 3 years, I’m not sure that that reflects the reality most first-time contractors face. What would be really useful is a summary of the typical returns you’d see for a few different typical day rates (say £250, £350 and £450 – not sure how close to an average these are?) as follows:
Contract Umbrella Ltd Co (Inside IR35) Ltd Co (Outside IR35)
3 months
6 months
12 months
Ideally this would include typical admin fees associated with using an umbrella and accountancy fees + company registration, etc costs associated with running your own ltd company.
Is this feasible or am I missing something quite basic?
I have spoken to an accountant and they tell me that Ltd Co would be best for me, but not sure how accurate or reliable this is (they would say that, wouldn’t they?). I’m starting a 6 month contract at £350 per day, but am dubious that I’m inside IR35, despite what they tell me.
Any and all response to this welcomed.
Thanks
Having read simonsjdaccountancy’s very useful sticky and other related forums, I'm still unsure which option is best for me.
For me (and most others entering the contractor market I guess) the initial choice of whether to go down the Umbrella or Ltd Co route is based on my expected IR35 status and which option will net me the best overall returns for my initial contract.
While the average contract length may be 3 years, I’m not sure that that reflects the reality most first-time contractors face. What would be really useful is a summary of the typical returns you’d see for a few different typical day rates (say £250, £350 and £450 – not sure how close to an average these are?) as follows:
Contract Umbrella Ltd Co (Inside IR35) Ltd Co (Outside IR35)
3 months
6 months
12 months
Ideally this would include typical admin fees associated with using an umbrella and accountancy fees + company registration, etc costs associated with running your own ltd company.
Is this feasible or am I missing something quite basic?
I have spoken to an accountant and they tell me that Ltd Co would be best for me, but not sure how accurate or reliable this is (they would say that, wouldn’t they?). I’m starting a 6 month contract at £350 per day, but am dubious that I’m inside IR35, despite what they tell me.
Any and all response to this welcomed.
Thanks
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