Short-term contracting outside IR35

[LisaContractorUmbrella]

So, my accountant tells me that my year-end can't be moved (since it was already moved once in the last 5 years) and that their fees would remain the same even if I only used the company for a couple of months.

Given that, I'll make the switch to umbrella and close the company. With the umbrella, I only pay the subscription on a week-by-week basis for each contract I undertake, correct? Rather than, say, an annual signup.

An umbrella company will only take their margin when they receive money in from the agency/client before paying you - this would usually be a fixed amount rather than a percentage. As TF says most brollies would need you to register with them for a minimum period - in our case 6 weeks

[kal]

So, my accountant tells me that my year-end can't be moved (since it was already moved once in the last 5 years) and that their fees would remain the same even if I only used the company for a couple of months.

Given that, I'll make the switch to umbrella and close the company. With the umbrella, I only pay the subscription on a week-by-week basis for each contract I undertake, correct? Rather than, say, an annual signup.

Of course if you go with the brolly then you will be paying full whack in terms of Income Tax & NI (Employee & Employers) which will significantly reduce your earnings against being Limited (if outside IR35), you could always mitigate this by paying most/all of that short term contract revenue straight into a pension if you have one set up

[TheFaQQer]

which leads me to question whether the umbrella route is the best, or if there's an alternative I'm missing.

Depending on how you plan to find work, you may find that self-employed is the best way. Agents won't touch you with a bargepole, but direct clients might.

Mind you, if you are permanently employed, what kind of work are you hoping to get freelance? Make sure that your permanent contract isn't going to limit what else you could do.