just starting out...

[HTS]

hey all

i just got my first contract, a 3 month interim stint...

i'm a bit unsure of whether to go Ltd or Umbrella and would value any comments or guidance you care to give...

cheers, steve

[richy]

hey all

i just got my first contract, a 3 month interim stint...

i'm a bit unsure of whether to go Ltd or Umbrella and would value any comments or guidance you care to give...

cheers, steve

Umbrella, see if you like contracting. if you do, setup ltd after your renewal after that initial 3 months!

[TykeMerc]

Umbrella, see if you like contracting. if you do, setup ltd after your renewal after that initial 3 months!

Probably sensible advice.

I know plenty of people here regard Umbrellas as the spawn of evil, but they have a place.

If you do like the world of cotracting and decide it's something you intend to do long term then a Ltd is the better option in many circumstances and it's very easy to set one up and appoint a contractor savvy accountant.

Best of luck here in the contracting world, for some of us it's an ideal choice.

[LisaContractorUmbrella]

Spawn of evil indeed - cheek!

As has already been said - for a 3 month contract an umbrella company would be a good option simply because you may decide that the contracting world is not for you. As you will be an employee of the umbrella company you can resign and walk away in the same way as you would from any other position; the closing down of a limited company will be more costly and time consuming. If you work with an umbrella that has an accountancy arm the transition from brolly to Ltd (if you decide to move) should be simple.

[Sally BFCA]

We have a comparison spreadsheet that you can download from our website. It compares Ltd co (inside and out of IR35), Umbrella, Self-employed and PAYE.

Please feel welcome to use it.

[TykeMerc]

Spawn of evil indeed - cheek!

As has already been said - for a 3 month contract an umbrella company would be a good option simply because you may decide that the contracting world is not for you. As you will be an employee of the umbrella company you can resign and walk away in the same way as you would from any other position; the closing down of a limited company will be more costly and time consuming. If you work with an umbrella that has an accountancy arm the transition from brolly to Ltd (if you decide to move) should be simple.

I'm sure you've seen my other posts here when some people have lambasted Umbrellas as a terrible option.
Unlike many other posters I feel they have a place and provide a useful service for more than just dipping a toe into contracting.
While I have a Myco Ltd there are scenarios and cicumstances that make an Umbrella solution (if wisely chosen) ideal for any term.

For a new contactor starting out it's a sensible and rational option and I've recommended it to several new contractors over the years.

[Sally BFCA]

I'm sure you've seen my other posts here when some people have lambasted Umbrellas as a terrible option.
Unlike many other posters I feel they have a place and provide a useful service for more than just dipping a toe into contracting.
While I have a Myco Ltd there are scenarios and cicumstances that make an Umbrella solution (if wisely chosen) ideal for any term.

For a new contactor starting out it's a sensible and rational option and I've recommended it to several new contractors over the years.

I totally agree, if you are unsure, start with an Umbrella and re-visit your options down the line.

[BolshieBastard]

Brollies, deffo satan's spawn! Brollies should only be used for when out in the rain and even then, you should be man enough to deal with a bit of rain!

[LisaContractorUmbrella]

I'm sure you've seen my other posts here when some people have lambasted Umbrellas as a terrible option.
Unlike many other posters I feel they have a place and provide a useful service for more than just dipping a toe into contracting.
While I have a Myco Ltd there are scenarios and cicumstances that make an Umbrella solution (if wisely chosen) ideal for any term.

For a new contactor starting out it's a sensible and rational option and I've recommended it to several new contractors over the years.

I have seen your other posts - it's nice to see someone sticking up for us

Seriously, even I would recommend a career contractor to have their own limited company but for first timers a good brolly is a safe and hassle free option

[rootsnall]

Nobody else has said it

Go straight for the Ltd, much more tax/NI efficient and will prove cost effective even on a 3 month contract. If you look up the usual suspects on here they do all the work for you in setting up the Ltd, etc etc