Newbie Q - 3 month rolling contract - Umbrella or Ltd.

[Eastendoflondon]

Hi All - I've just accepted a role where i am on a 3 month rolling contract. They have asked me to set up a Ltd company. I'm not sure if it's worth me setting up Ltd company though if the contract only last for say 3/6/9 months. I'm hoping to benefit from claim childcare vouchers / daily expense claims but believe the childcare voucher scheme benefit is only allowable if i claim for full year - is that right?
On a side note the company are witholding some of my daily rate (about 3%) which will be given to me as a retainer at the end of the initial 3 months. Anyone got any help / thoughts on that?
I'm guessing you will all say speak to an accountant but just thought i'd out the questions out there to see what comes back.
Cheers!

[northernladuk]

Umbrellas are only efficient if you are planning on about 30k a year I believe. Anything above that go LTDs.

Accountancy aside if you feel more comfortable kicking the first three months off under a brolly and re assess later you aren't going to lose much but might have better piece of mind. I did on my first gig just to allow me to get my head around the business stuff rather than sink. Might have been a little less tax efficient but peanuts compared to a long career contracting.

[TestMangler]

Hi All - I've just accepted a role where i am on a 3 month rolling contract. They have asked me to set up a Ltd company. I'm not sure if it's worth me setting up Ltd company though if the contract only last for say 3/6/9 months. I'm hoping to benefit from claim childcare vouchers / daily expense claims but believe the childcare voucher scheme benefit is only allowable if i claim for full year - is that right?
On a side note the company are witholding some of my daily rate (about 3%) which will be given to me as a retainer at the end of the initial 3 months. Anyone got any help / thoughts on that?
I'm guessing you will all say speak to an accountant but just thought i'd out the questions out there to see what comes back.
Cheers!

Sorry to be a pedant, but I'd be willing to bet that you're not. You're on a three month contract and the agent has added the word 'rolling' when describing it to you. A 'rolling' contract is not three months followed by another and another. A three month rolling contract is one where you have three months left on your contract every day you come in to work (common for certain industries) but exceedingly uncommon in this industry.

Otherwise, what NLUK said.....

[northernladuk]

IR35 is going to be a problem if it is a true rolling contract as well. It may well be umbrella is the best option regardless of length.

[TheFaQQer]

If this is going to be your only contract, then whether you go via umbrella or limited company, the expenses that you can claim will be affected.

[Eastendoflondon]

Ok cheers all - i'll ask the agency if they are happy with me going the umbrella route

[CloudWalker]

I'd start with a brolly company first just to get a feel for contracting.

[LisaContractorUmbrella]

The contract may only end up being for 3 months so try an umbrella and then, if the contract's extended, look at opening a Ltd Co.

[northernladuk]

The contract may only end up being for 3 months so try an umbrella and then, if the contract's extended, look at opening a Ltd Co.

You wouldn't happen to know a good one would you?

[LisaContractorUmbrella]

You wouldn't happen to know a good one would you?

Funnily enough I would