Need some advice regarding limited or umbrella (short time to make my mind up)

[Brookster]

Hi people,

Been offered a contract at just over £20 per hour for 2 years.

Need to decide whether to go limited co. or umbrella.

I am going from a few months unemployed to employed, so at this current moment funds are minimal (but not 0).

Would like to not have too much hassle preferably and focus more on my job rather than accounts but a little side work is not too much problem, but I would also like more money

At this rate as mentioned above what would be my best option?

[stek]

Hi people,

Been offered a contract at just over £20 per hour for 2 years.

Need to decide whether to go limited co. or umbrella.

I am going from a few months unemployed to employed, so at this current moment funds are minimal (but not 0).

Would like to not have too much hassle preferably and focus more on my job rather than accounts but a little side work is not too much problem, but I would also like more money

At this rate as mentioned above what would be my best option?

Is this an FTC? How far from home - you do realise you can't claim any travel or accommodation expenses etc as you are caught by the 24 month rule.

[Brookster]

Is this an FTC? How far from home - you do realise you can't claim any travel or accommodation expenses etc as you are caught by the 24 month rule.

Thanks for your reply,

Full time yes, during interview client stated they would have fuel cards for the van and they would pay for 3 nights accommodation.

Role will be based near home but with regular travel.

[Andy Hallett]

Need some advice regarding limited or umbrella (short time to make my mind up)

Based on the rate, I would suggest umbrella. You are on the generally accepted borderline, but with aversion to admin I'd say play it safe.

As one of the other posters has noted, see if you can nudge it under 2 years.

[Brookster]

Thanks Andy , sorry replies are taking so long they need to be mod viewed.

Thinking that's the correct action also , was just wondering how great a mark up I would be missing out on for taking the easy option.

As I replied to your post stek (it hasn't shown up), client will pay for 3 night per week(+20 pounds meal) and will be given fuel cards.

Cheers guys

[socialworker]

As a relative newcomer I am taking a risk her but anyway ....Dont forget umbrella means you will pay employers and employees NI, paye tax and the umbrella's cut which could be for example £27 pw. If you were able to claim large mileage to and from a temp workplace, maybe worth it but if not then I would be inclined to simply go paye from the agency. No worries about running a ltd and IR35 investigations, accountancy, record keeping, invoicing, professional and public liability insurance, seperate bank account, IR 35 insurance/reviews, VAT returns ......

I have just gone Ltd on a rate not that much more than yours but I realise it won't actually be that advantageous financially and there are risks. I am hoping there will be project work available at some point this year. If you are really sure you are outside IR35 then maybe worth it.

If you do not have much time to mull it over I would suggest going direct with the agency if you can, unless you have loads of home to work mileage AND the contract period is under 2 years AND you continue to work under the umbrella for another contract. You could always change to limited later. BTW just set up a business bank account with HSBC online, that will be quick I thought as I am already a First Direct customer, but even though my identity was already confirmed it is still going to take a couple of weeks.

[eek]

BTW just set up a business bank account with HSBC online, that will be quick I thought as I am already a First Direct customer, but even though my identity was already confirmed it is still going to take a couple of weeks.

Go into a branch and get the business manager to setup the account. They can do it there and then.

[Brookster]

As a relative newcomer I am taking a risk her but anyway ....Dont forget umbrella means you will pay employers and employees NI, paye tax and the umbrella's cut which could be for example £27 pw. If you were able to claim large mileage to and from a temp workplace, maybe worth it but if not then I would be inclined to simply go paye from the agency. No worries about running a ltd and IR35 investigations, accountancy, record keeping, invoicing, professional and public liability insurance, seperate bank account, IR 35 insurance/reviews, VAT returns ......

I have just gone Ltd on a rate not that much more than yours but I realise it won't actually be that advantageous financially and there are risks. I am hoping there will be project work available at some point this year. If you are really sure you are outside IR35 then maybe worth it.

If you do not have much time to mull it over I would suggest going direct with the agency if you can, unless you have loads of home to work mileage AND the contract period is under 2 years AND you continue to work under the umbrella for another contract. You could always change to limited later. BTW just set up a business bank account with HSBC online, that will be quick I thought as I am already a First Direct customer, but even though my identity was already confirmed it is still going to take a couple of weeks.

Unluckily for me the agency does not do PAYE, so it's umbrella or limited. Thanks for confirming the amount of hassle and risk to me.
They have there own recommended umbrella which i will probably use.

I wouldn't be hassling you guys but this has been thrown as me with 0 info and only a few days to prepare.

[socialworker]

Go into a branch and get the business manager to setup the account. They can do it there and then.

Yep realise that now! I went through the whole online form, then they phoned me and went through every question again - and again - if I told them my date of birth once I must have done it 3 or 4 times. Asked numerous times if I wanted to borrow money - no. Still got asked all the credit questions and money laundering ("where did the £150 quid you are going to put in the account come from? Drug dealing of course. "I see you are a one man band social worker. Are you part of any international corporation?") Took about 45 mins. Jeez.