Newbie after some help

[D-A-V-Y]

Hi I've just been offered a 6 month contract role after deciding to jump the Permie ship and I'm struggling to decide the best way to go - Ltd Co or Umbrella.

It appears there is more work in running a ltd co. but you get better return than you do via an umbrella company? I've also had a look on the SJD accountancy website as they seem to offer a scheme which works out even better than running the ltd. co yourself!? However I'm not sure the expenses I can claim while I'm working in this contract will be huge - Its commutable from home so I don't think I can claim travel expenses and there will be no acomodation expense?

I don't have the contract through yet, it should arrive on Monday and I believe I need to get it checked over for IR35 compliance?

So my question in a nutshell is 'Ltd. Co or Umbrella?' And are there any accountants/umbrella companies people would recommend or advise I avoid? Any help would be greatly appreciated.

[Mordac]

Read this thread

Then ask questions.

[D-A-V-Y]

Try this umbrella company.....
http://forums.contractoruk.com/showp...5&postcount=13
"The quality of today, the market of tomorrow."

I've already got shares in them... not doing so well in the summer though

[D-A-V-Y]

Read this thread

Then ask questions.

Thanks for that, it seems that the SJD scheme is good at the moment, but the tax situation could change - I do like the look of it, but are there any problems with ceasing trading every 2-3 years? I would imagine HMRC wouldn't be too pleased if you're getting taper relief every 2-3 years. Also I'm not sure how would this look from a client perspective if you return to their site trading under different names?

[Denny]

Hi I've just been offered a 6 month contract role after deciding to jump the Permie ship and I'm struggling to decide the best way to go - Ltd Co or Umbrella.

It appears there is more work in running a ltd co. but you get better return than you do via an umbrella company? I've also had a look on the SJD accountancy website as they seem to offer a scheme which works out even better than running the ltd. co yourself!? However I'm not sure the expenses I can claim while I'm working in this contract will be huge - Its commutable from home so I don't think I can claim travel expenses and there will be no acomodation expense?

I don't have the contract through yet, it should arrive on Monday and I believe I need to get it checked over for IR35 compliance?

So my question in a nutshell is 'Ltd. Co or Umbrella?' And are there any accountants/umbrella companies people would recommend or advise I avoid? Any help would be greatly appreciated.

It's only worth being limited in your own right if you are usually IR35 exempt in most of your roles (I don't just mean the clauses in your contract, but your actual working conditions). Otherwise, you may as well use a reliable brollie.

[Fungus]

It's only worth being limited in your own right if you are usually IR35 exempt in most of your roles (I don't just mean the clauses in your contract, but your actual working conditions). Otherwise, you may as well use a reliable brollie.

As I understand it, if you are not IR35 exempt, you are better to have your own ltd company as you get a flat 5% tax free for expenses, and you can then claim other expenses on top of that. I don't think you get the flat 5% from a brolly.

[Mordac]

As I understand it, if you are not IR35 exempt, you are better to have your own ltd company as you get a flat 5% tax free for expenses, and you can then claim other expenses on top of that. I don't think you get the flat 5% from a brolly.

Correct.