ltd help

[rocketron]

just been offered a new contract but the agents wont use my umbrella company as it has an off shore element. now i am thinking of going down the route of a LTD but im not sure if im going to be better off or should i use another umberlla such as CXC?

[RichardCranium]

Just go Ltd.

[javadude]

income: umbrella < ltd < offshore

hmrc investigation risk: umbrella < ltd < offshore

[DS23]

generally speaking

you will be better off (more money) with a ltd
you will be better off (less paperwork) with an umbrella

what is more important to you - cash and control or time?

personally i couldn't face the idea of paying someone to do paperwork i can do myself.

[LisaContractorUmbrella]

just been offered a new contract but the agents wont use my umbrella company as it has an off shore element. now i am thinking of going down the route of a LTD but im not sure if im going to be better off or should i use another umberlla such as CXC?

IT would seem that the other umbrella company you mentioned assume that you will be spending £200 each day if you work through them but only £70 if you work through any other umbrella company. At least that is what I assume they mean as their website quotes £200 expenses in the calculation they use for your projected take home pay using their services but only £70 for any other umbrella company. Therefore you have to ask yourself:

Why would you spend more with them as your employer?

If you would not be spending more, why would you claim more expenses?

If you haven't incurred £200 in costs why would the umbrella company process that figure as an expense?

If you haven't incurred £200 in costs but the umbrella company still process that figure as an expense, which will reduce your tax liability, would it be likely that HMR&C would 'approve' such a practise.

If HMR&C haven't approved such a scheme who do you think will bear the brunt of their wrath should they discover that such a scheme has been operated without their approval?

[rocketron]

So we are going limited after taking advice from a friend (Accountant), I have an early appointment with him in the morning i just hope I'm going to be better off than using a umbrella.

this has been a very stressfull day.....

[MarillionFan]

So we are going limited after taking advice from a friend (Accountant), I have an early appointment with him in the morning i just hope I'm going to be better off than using a umbrella.

this has been a very stressfull day.....

Good luck. Don't get suckered into paying your accountant a fortune for setting up a LTD. You can use an internet broker to do it for just a few quid. Do some more research on this forum for recommendations.

[Stag Cozier]

Also ask him about the flat rate VAT scheme. This is extra profit you wouldn't otherwise see if you went brolly. I love free money!

[rocketron]

Good luck. Don't get suckered into paying your accountant a fortune for setting up a LTD. You can use an internet broker to do it for just a few quid. Do some more research on this forum for recommendations.

the guy i have got doing the account stuff is a very good friend of mine and also a student of mine (I am a scuba instructor), so unless he wants to have his air turned off while underwater he had best look after me.

[rocketron]

Also ask him about the flat rate VAT scheme. This is extra profit you wouldn't otherwise see if you went brolly. I love free money!

Will do that thanks