is my contract worth opening a company?

[pappa]

hello world,
i am very new to contracting world.
i got 3 months of contract, pay is 130 gbp per day.

what do you suggest? should i join umbrella company? or open my own limited company? which option would give me more money (net income)?

i can handle hassle involved with opening a company if it gives me more money - in fact i think it's no more of hassle if you go with accountant - they do all paper work.

anyway, please suggest.

my expenses are going to be on public transport and food, primarily.

thanks.

[BA to the Stars]

hello world,
i am very new to contracting world.
i got 3 months of contract, pay is 130 gbp per day.

what do you suggest? should i join umbrella company? or open my own limited company? which option would give me more money (net income)?

i can handle hassle involved with opening a company if it gives me more money - in fact i think it's no more of hassle if you go with accountant - they do all paper work.

anyway, please suggest.

my expenses are going to be on public transport and food, primarily.

thanks.

I suggest look to the right hand side of the page.
Look under the heading CUK Navigation
Click on the 3rd item down called "First Timers"
You may also want to click on "Limited Companies" & "Umbrella Companies"

Are you going to be contracting all the time or will this be your only contract - if the latter then a brolly is the way to go for 3 months, but you need to do a bit of research first.

[BA to the Stars]

PS - welcome to the world of contracting

[northernladuk]

I suggest look to the right hand side ....oh hang on.. Bugger...

[northernladuk]

I can point out that this is the Business/Contracts section of the forum, not the Finance. In the Finance section there is a sub fora dedicated to Umbrellas in which you will find some threads that will answer your question such as...

http://forums.contractoruk.com/umbre...composite.html

http://forums.contractoruk.com/umbre...fraid-ask.html

Also do a search for contractor calulators. You will find the tools to compare the take home of you running and LTD vs a Brolly to help you make the choice.

[Jessica@WhiteFieldTax]

As a rule of thumb, three months is a good cut off point.

If this will be a one off, then I'd say Umbrella.

If you can anticipate it going longer the think about your own company.

[northernladuk]

As a rule of thumb, three months is a good cut off point.

If this will be a one off, then I'd say Umbrella.

If you can anticipate it going longer the think about your own company.

But remember if it is a one off he can't claim travelling expenses I believe if recent threads are anything to go by.

[Old Hack]

hello world,
i am very new to contracting world.
i got 3 months of contract, pay is 130 gbp per day.

what do you suggest? should i join umbrella company? or open my own limited company? which option would give me more money (net income)?

i can handle hassle involved with opening a company if it gives me more money - in fact i think it's no more of hassle if you go with accountant - they do all paper work.

anyway, please suggest.

my expenses are going to be on public transport and food, primarily.

thanks.

If you're only on £130, I'd steer clear of contracting; you can earn more in Private Hire Car's, or as a chef, in a good Indian restaurant, or as a hospital porter, they earn a good crack...

[pappa]

can't cook or drive

If you're only on £130, I'd steer clear of contracting; you can earn more in Private Hire Car's, or as a chef, in a good Indian restaurant, or as a hospital porter, they earn a good crack...

thanks for suggestion but I can't cook or drive

[pappa]

thanks

I can point out that this is the Business/Contracts section of the forum, not the Finance. In the Finance section there is a sub fora dedicated to Umbrellas in which you will find some threads that will answer your question such as...

http://forums.contractoruk.com/umbre...composite.html

http://forums.contractoruk.com/umbre...fraid-ask.html

Also do a search for contractor calulators. You will find the tools to compare the take home of you running and LTD vs a Brolly to help you make the choice.

thanks for pointing to this thread.
i know i can find general information over google. what i was expecting is some personal advice like minimum accountancy fee is 180 gbp per month and your salary is 2600 gbp per month and 1 time company opening fee is 100........ so your take home would be................... something like that...