Paye, umbrella or limited company???

[Grac1e]

I start a new contract next week. It's for 3 months and about £400 per day. I need to make a decision quickly if I should set up a limited company with the associated costs of insurance, accountants etc., go with an umbrella company costing c£28/week or just go good old PAYE.
Any advice would be appreciated!

[cojak]

Is this contract just a stop gap? If so go umbrella.

[northernladuk]

How do you mean good old PAYE? Question is do you understand LTD's enough to feel comfortable setting one up and running it at this stage?

I would doubt it so would say go brolly for this gig and set you LTD up and understand it in the meantime. That is playing safe it has to be said so will cost a little bit for this one gig but will stop you making a right hash of it all.

Others will come on and tell you to jump in the deepend and go LTD from the start.

[stek]

What about one of those EBT's?

[Grac1e]

How do you mean good old PAYE? Question is do you understand LTD's enough to feel comfortable setting one up and running it at this stage?

I would doubt it so would say go brolly for this gig and set you LTD up and understand it in the meantime. That is playing safe it has to be said so will cost a little bit for this one gig but will stop you making a right hash of it all.

Others will come on and tell you to jump in the deepend and go LTD from the start.

I am comfortable with the Limited route as I did it a few years ago. But this gig is only for 3 months and I may not be able to get another contract quickly. The recruitment agency I got the job through offers PAYE as an option and I wondered if it was worth considering. The "brolly" option doesn't look attractive to me but I'm open to options.

Thanks!

[Grac1e]

I went with the Limited Company before (finished 3 years ago) but that was for a gig that lasted 5 years. This is just a 3 month contract and so the cost of setting up a company, getting insurance, paying c£90/month for an accountant etc. may not justify the savings a Limited Co can provide.
From what I read about umbrella companies, the only benefit seems to be around expenses and as I'll have no overnight stays I can't see any advantage.
The recruitment agency offers PAYE option and for 3-4 months I wondered if this is best, less hassle, less costs but worse off tax wise?

[Grac1e]

PAYE?

I went with the Limited Company before (finished 3 years ago) but that was for a gig that lasted 5 years. This is just a 3 month contract and so the cost of setting up a company, getting insurance, paying c£90/month for an accountant etc. may not justify the savings a Limited Co can provide.
From what I read about umbrella companies, the only benefit seems to be around expenses and as I'll have no overnight stays I can't see any advantage.
The recruitment agency offers PAYE option and for 3-4 months I wondered if this is best, less hassle, less costs but worse off tax wise?

[LisaContractorUmbrella]

I went with the Limited Company before (finished 3 years ago) but that was for a gig that lasted 5 years. This is just a 3 month contract and so the cost of setting up a company, getting insurance, paying c£90/month for an accountant etc. may not justify the savings a Limited Co can provide.
From what I read about umbrella companies, the only benefit seems to be around expenses and as I'll have no overnight stays I can't see any advantage.
The recruitment agency offers PAYE option and for 3-4 months I wondered if this is best, less hassle, less costs but worse off tax wise?

What's the difference between the PAYE rate that the agency are offering and the rate payable for Ltd/umbrella?

The umbrella/Ltd rate should be significantly higher - if it's not then go PAYE

[LisaContractorUmbrella]

What about one of those EBT's?

[Andrew@Wisteria]

I start a new contract next week. It's for 3 months and about £400 per day. I need to make a decision quickly if I should set up a limited company with the associated costs of insurance, accountants etc., go with an umbrella company costing c£28/week or just go good old PAYE.
Any advice would be appreciated!

If you have the option of PAYE, I'd be worried about your IR35 status, and therefore even this became a longer term option, you would still lose the main benefit of the Ltd (i.e. not paying NI!)