Ltd or Umbrella (a defined term)?

[scribe]

Hi,

I'm looking at taking the plunge into contracting soon.

I've read the guides, and I think I'm building up a sound knowledge base, but I have one question at the moment: Essentially, when I go contracting I was intending to go Ltd, but I'd only be doing it for 2 to 3 years when the plan is to move to Australia. With this in mind would you advise against Ltd.

I ask as I've seen advice given to newbie contractors to go with an umbrella as finishing contracting under an umbrella company is easier than "the hassle of winding up a Ltd company" (not my words) if contracting is not for them. Different circumstances for me, but essentialy the result would be the same, possibly as little as 2 years in the game and then winding up the company.

Cheers

Scribe

[Clare@InTouch]

2 years is still worth setting up a company for in my view, providing your income will be over £30,000 per year. The tax advantages make it worthwhile, as long as you don't mind a little bit of extra admin. It's not massive though, and any decent accountant will help you as much as you need.

Closing a company is time consuming, but it's not a huge amount of hassle. We have clients who quite often stay here for a few years, wind the company up and then move abroad. As long as you're organised you can sign the paperwork before you go, then just leave it to your accountant to work through the process.

[scribe]

Thanks for the reply, that helps.

Cheers

Scribe

[Waldorf]

This is my second time with my own company and closing my first was quite easy, my accountant (nixon williams) handled it all and I just had to sign a few forms.

It wouldn't put me off, certainly if you are planning to do it for 2 years.