Ltd or umbrella please advice

[lalitswain]

Hi I joined a company as a contractor few month back and opted for a umbrella company. As my tier 1 visa is due for renewal, some one told me to go for umbrella company as they will give you proper salary slips etc.

But after few months i realize they are working in suspicious mode. i am getting 74% of money for each invoice.

My wife also got a new contract now and I am thinking of setting up a ltd company for us.

My question is After giving all the taxes and all how much money % you get in ltd company ?

should i go for 2 different ltd company or just one for both of us ?

How would i know if i come under ir35?

[cojak]

Welcome to CUK lalitswain.

Take a look at the thread on the top of this board (Welcome/FAQs), it will help you to search for your questions.

Please also read the Nettiquette thread, this will help to avoid abuse from the regulars on the rest of the board

On the right border, under 'Navigation', you will find the First Timer's Guide, as well as IR35, etc - they will provide answers to your questions.

The guides will answer many of your questions, but please come back if you have further questions (the calculators http://www.contractoruk.com/calculators/ are particularly useful).


Good Luck!

[Wanderer]

As cojak says, the answers to your questions about IR35 and tax calculators can be found in the links on the right.

There are a couple of questions for which the answers are not so clear cut so I'll respond to these below.

As my tier 1 visa is due for renewal, some one told me to go for umbrella company as they will give you proper salary slips etc.

I don't think that is strictly necessary to go PAYE because the UKBA may accept dividends from a LTD company but you should talk to your immigration advisor about this. Don't come crying to us if we give you the wrong advice and you get your visa cancelled!

should i go for 2 different ltd company or just one for both of us ?

I think just 1 company and you can both be shareholders. Two companies means two lots of admin and two lots of account's fees (you will need an accountant from the day you set the company up).

You need to discuss the number of shares per person with an accountant because your tax affairs will be a bit more complex if you choose to form a company. There are big tax savings to be made if can avoid IR35 it's worth considering.

[northernladuk]

Go umbrella. Running a LTD needs some effort and some level of basic understanding that is obviously missing.

Umbrella nice and easy, can't really mess up. Check out the thread with the guy that has messed his dividends up so is going to struggle to prove he has earned enough to have his Tier 1 renewed if you don't believe me.