Business Structure Quesion

[grant32]

I've been reading for about a week now, and whilst this forum is an amazing source of information I'm not sure I'm any closer to a decision. I'm hoping someone here can offer advice or information.

I have been unemployed (by choice) for the last few months, and have just been offered 20 days of work by a company that I had dealings with in my last job (but I was not employed by them). At the moment it's just this one-off job, but it may lead to other opportunities. I could also look for other engagements with other companies which the specific skills I have.

As I see it the choices are going through an Umbrella, setting up a limited company, or being a sole trader.

This specific contract is for 20 days at £500 per day. The end client is a customer of the company I would have the contract with. Half of the work I can do from home, half must be done at the end client site. I would use a mix of my own equipment and theirs (due to data confidentiality). I am the only person they would accept for this piece of work due to past reputation and specific skills. There will be set deliverables on certain dates, but some work must be done on specific dates due to end client availability and other project milestones. Offsite work can be completed at times and dates of my choosing as long as deliverable dates are met.

I guess I am trying to decide if I would be inside or outside IR35 (or an employee or self-employed) for this specific contract.

Any advice or pointers to other information to help me decide? I'm probably leaning towards an umbrella at this stage as I don't know if any additional contracts with this company would come my way or if I could find others elsewhere. For 20 days is it worth the hassle to set up the limited company.

Thanks in advance!

[malvolio]

I've been reading for about a week now, and whilst this forum is an amazing source of information I'm not sure I'm any closer to a decision. I'm hoping someone here can offer advice or information.

I have been unemployed (by choice) for the last few months, and have just been offered 20 days of work by a company that I had dealings with in my last job (but I was not employed by them). At the moment it's just this one-off job, but it may lead to other opportunities. I could also look for other engagements with other companies which the specific skills I have.

As I see it the choices are going through an Umbrella, setting up a limited company, or being a sole trader.

This specific contract is for 20 days at £500 per day. The end client is a customer of the company I would have the contract with. Half of the work I can do from home, half must be done at the end client site. I would use a mix of my own equipment and theirs (due to data confidentiality). I am the only person they would accept for this piece of work due to past reputation and specific skills. There will be set deliverables on certain dates, but some work must be done on specific dates due to end client availability and other project milestones. Offsite work can be completed at times and dates of my choosing as long as deliverable dates are met.

I guess I am trying to decide if I would be inside or outside IR35 (or an employee or self-employed) for this specific contract.

Any advice or pointers to other information to help me decide? I'm probably leaning towards an umbrella at this stage as I don't know if any additional contracts with this company would come my way or if I could find others elsewhere. For 20 days is it worth the hassle to set up the limited company.

Thanks in advance!

Sounds like sole trader territory for this one piece of work, although, as long as you fully declare all your earnings on your SA form you don't actually need a corporate envelope. But if you're going to make a career out of go Limited (or start with an umbrella until you know what you're doing).

IR35? Who knows, but I doubt it's a concern - you're carrying business risk, you're setting the working locations, it's a defined deliverable, you're using your own kit... all looks pretty solid to me.

You might usefully have a read of the PCG's Guide to Freelancing (www.pcg.org.uk), that's a far more comprehensive overview of the whole area than even this forum.

[grant32]

Thanks for the reply. I guess I'm most concerned about IR35 and substitution. I couldn't send anyone except myself to do the job. If all the other points are strongly in my favour does this still bode well for being outside IR35? Will head over to PCG to do some more reading. Thanks again.

[Maslins]

Sounds like sole trader territory for this one piece of work, although, as long as you fully declare all your earnings on your SA form you don't actually need a corporate envelope. But if you're going to make a career out of go Limited (or start with an umbrella until you know what you're doing).

IR35? Who knows, but I doubt it's a concern - you're carrying business risk, you're setting the working locations, it's a defined deliverable, you're using your own kit... all looks pretty solid to me.

Exactly this.

If there's a very real chance it'll be a one off then you'll get a PAYE role, don't bother with Ltd Co.

From info you've provided you sound safe from an IR35 POV.

[northernladuk]

You have read the stickies in the Umbrella section about the differences, benefits and downsides yes?