Umbrella or Ltd inside IR35?

[mickey]

Hey all,

Do I understand correctly that the two options are very similar in terms of take home?

I get the impression all major providers of the tax liability cover feel twitchy these days about reimbursing the potential tax liability, even when the contract passes the review. The majors I mean Qdos, Abbey, Accountax and OHara.

Without the IR35 cover I'm not comfortable going on the outside, and hence the question about the brolly is relevant.

Given a choice what would you do and why?

Ta!

[northernladuk]

If I was you I would delete my CUK account and look for something else to do.

[Craig at Nixon Williams]

Hey all,

Do I understand correctly that the two options are very similar in terms of take home?

I get the impression all major providers of the tax liability cover feel twitchy these days about reimbursing the potential tax liability, even when the contract passes the review. The majors I mean Qdos, Abbey, Accountax and OHara.

Without the IR35 cover I'm not comfortable going on the outside, and hence the question about the brolly is relevant.

Given a choice what would you do and why?

Ta!

The take-home pay is closer when caught by IR35, but still a bit higher with a Ltd.

What gives you the impression that insurance providers are getting twitchy about this? Qdos are still offering their TLC35 cover so I'd assume that they woudl still be happy to defend your case and pay out if they fail...

Given the choice I'd say to go limited, not just for the extra cash but because I'd be more comfortable handling my money than exposing myself to third party risk as you would with an umbrella...

Craig

[GB9]

If you do a one off job through a brolly you will struggle with expenses. And as Craig has said, why would you want to use one anyway? Better off managing your own affairs.

However, expenses are the potential financial impact.

[Jessica@WhiteFieldTax]

Hey all,

Do I understand correctly that the two options are very similar in terms of take home?

Ta!

Broadly, yes. Own company gives you the potential benefit of flat rate vat and a bit more control, v increased admin.

FWIW, caught by IR35 I would probably say brolly for quiet life.

[mickey]

If I was you I would delete my CUK account and look for something else to do.

Every opinion counts

[northernladuk]

Every opinion counts

Glad I could add some value.

[mickey]

Broadly, yes. Own company gives you the potential benefit of flat rate vat and a bit more control, v increased admin.

FWIW, caught by IR35 I would probably say brolly for quiet life.

Thank you

[DirtyDog]

The take-home pay is closer when caught by IR35, but still a bit lower with a Ltd.

I'd have thought that the take-home via Ltd inside IR35 had the potential to be slightly higher than going brolly - FRS savings, 5% expenses etc. That assumes that the costs of an accountant are broadly similar to those of an umbrella company.

[Craig at Nixon Williams]

I'd have thought that the take-home via Ltd inside IR35 had the potential to be slightly higher than going brolly - FRS savings, 5% expenses etc. That assumes that the costs of an accountant are broadly similar to those of an umbrella company.

Oops!

That's what I meant...I'll edit my post so that I don't confuse anybody else.

Thanks
Craig