Not sure, Umbrella or Ltd ?

[prozak]

Just ran your numbers quickly.

Difference between LTD - small salary + dividends

and

total PAYE - i.e. Umbrella

is about £500 a month.

[LisaContractorUmbrella]

Before working out figures work out if you will be outside IR35 - no point comparing brolly PAYE with Ltd divs if you will be inside - like comparing apples with pears

[Wanderer]

To be perfectly honest JoeyD, if you have to ask "Umbrella or LTD" then the answer is probably that they should go Umbrella. Umbrella is the simplest way to trade and you can sleep easy knowing your tax is all paid and you don't have to worry about all the admin overhead and legal responsibilities of running a company.

If at some time in the future you have done enough research to understand all the ins and outs of running a company and you are confident about your status as being in business of your own account rather than working as an employee, then it may be time to consider switching to a LTD company...

Avoid these offshore "schemes" like the plague though...

[Wary]

I've phoned an accountant and asked him lots of terribly stupid questions and I'm going to go with a limited company I think. The accountant said he'd pretty much take all my worries away for £170 a month, which sounds great.

Peace and regards,

Joe !

This is very expensive. Try Nixon Williams, who really will do pretty much everything for you including providing you with a LTD Company (for free) and initiating the set-up of a company bank account. Can't remember the exact monthly fee but it is less that £100 pcm.

[Andrew at Boox]

Also check if the proposed accountants have an online portal where you can manage your Ltd company outside of business hours. This is often thrown in free with online contractor accountants and is very helpful for when you need to get personal things done in your own time (and from any location in fact!)

[prozak]

Before working out figures work out if you will be outside IR35 - no point comparing brolly PAYE with Ltd divs if you will be inside - like comparing apples with pears

Scaremongeriing Alert Alert Alert.

Danger Will Robinson!

[LisaContractorUmbrella]

Scaremongeriing Alert Alert Alert.

Danger Will Robinson!

Yes, yes, yes very droll