Whats best for a short term contract Whats best for a short term contract
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  1. #1

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    Default 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. #2

    Prof Cunning @ Oxford Uni

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    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?
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  3. #3

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    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.

  4. #4

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    Depends.....
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  5. #5

    Double Godlike!

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    Quote 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.
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  6. #6

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    Quote 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

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    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?
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  8. #8

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    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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