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Whats best for a short term contract

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    Whats best for a short term contract

    Hi there,

    I have been offered a short term contract, 3 to 4 months, 1-2 days a week. Which is the best one to set up:

    a) a limited company.
    b) Use an umberella agency.
    c) set up as a small trader.

    In the past I have been a limited co. but I closed this about 2 years ago.

    Could I not just set up as a Ltd co. and close the co down after 3-4 months, not having to do a annual return?

    #2
    For short term I would just go with an umbrella, unless there are several facts you're not telling us.
    Are you currently in a permanent job?
    Are you planning on doing more contracts after this one?
    Have you spoken to your accountant?
    …Maybe we ain’t that young anymore

    Comment


      #3
      What's a small trader? That's not a company structure I'm familiar with.

      I would do umbrella if I had no intention of doing another contract ever again.

      You can't create a LtdCo, trade for a few months and then close it down without having to submit something. There'll be paperwork and taxes somewhere along the line and the costs (time and money) won't be worth the return for the short amount of time you're talking about.

      Comment


        #4
        Depends.....
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by ladymuck View Post
          What's a small trader? That's not a company structure I'm familiar with.

          I would do umbrella if I had no intention of doing another contract ever again.

          You can't create a LtdCo, trade for a few months and then close it down without having to submit something. There'll be paperwork and taxes somewhere along the line and the costs (time and money) won't be worth the return for the short amount of time you're talking about.
          I would expect that OP means sole trader.

          I wouldn't have imagined an umbrella is that efficient for only 1-2 days per week.
          The greatest trick the devil ever pulled was convincing the world that he didn't exist

          Comment


            #6
            Originally posted by ladymuck View Post
            What's a small trader? That's not a company structure I'm familiar with.

            I would do umbrella if I had no intention of doing another contract ever again.

            You can't create a LtdCo, trade for a few months and then close it down without having to submit something. There'll be paperwork and taxes somewhere along the line and the costs (time and money) won't be worth the return for the short amount of time you're talking about.
            Depends.......


            Actually you can, often with a few other "Directors".

            If you live in India and are going to return there within 2-3 years, its a very viable (albeit illegal) and profitable option
            The Chunt of Chunts.

            Comment


              #7
              I'd initially be tempted by sole trader if this is with someone you know... there are indemnity issues and many companies won't deal with sole traders but this sounds more likely a small company wanting some freelance work doing?
              Originally posted by MaryPoppins
              I'd still not breastfeed a nazi
              Originally posted by vetran
              Urine is quite nourishing

              Comment


                #8
                Sorry I meant Sole Trader. Seems like its this or the umberella, I do have a close relationship with the company I am working with.

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