Contracting or Umberralla

[vik845]

Hello,

I have a picked up a contract @ £150 pd, should I go for ltd or Umbrella, any advise?

Many Thanks

[LisaContractorUmbrella]

Hello,

I have a picked up a contract @ £150 pd, should I go for ltd or Umbrella, any advise?

Many Thanks

Have you contracted before? If no then I would go umbrella for the first few months until you get your head around everything
Will the contract put you inside or outside IR35? If you don't know about IR35 and what it could mean then go umbrella for a couple of months while you do some research
If you have contracted before, understand and accept the obligations that you will have as the Director of a Ltd Co and are outside IR35 then definitely go Ltd as you will be financially better off
If you're not keen on the responsibilities that you will have as a company director then stick with umbrella as it will be less hassle for you

HTH

[pr1]

definitely umberralla

[Sausage Surprise]

definitely umberralla

Thanks for the advise

[vik845]

I have done contracting before for 6 -7 months and my contract is outside ir35 checked with my accountant. I have heard that contractors will ending up paying more dividends from TAX period 2016/17 compared to 2015/16. will I still be better of contracting through ltd company?

Thanks

[LondonManc]

I have done contracting before for 6 -7 months and my contract is outside ir35 checked with my accountant. I have heard that contractors will ending up paying more dividends from TAX period 2016/17 compared to 2015/16. will I still be better of contracting through ltd company?

Thanks

At £150/day, I wouldn't worry.

[TheFaQQer]

I have heard that contractors will ending up paying more dividends from TAX period 2016/17 compared to 2015/16.

All shareholders in all companies will pay tax at a new rate if they earn more than £5000 a year in dividend income from April 2016.

That doesn't quite equate to "contractors will ending up paying more dividends" though.

[northernladuk]

The general consensus I believe is under £30k its better to be brolly. I guess that will change with the new figures so would be interesting if someone could have a look at this and see what the new number would be.

It's also not a bad idea to stick to brolly if you are either unsure about accounting and the responsibilities that come with it and not sure you will be contracting for long. Even if on paper a limited is marginally better it's a lot more hassle, you've quite a bit to learn and will undoubtedly struggle with the concepts of expenses and the like and then you've got to shut it all down. Sometimes an easy life is worth a lot more than a marginal tax benefit.

And please don't use 'advise' instead of 'advice'. It pisses me off something shocking.

[MrMarkyMark]

At £150 PD, would you not be better off going perm?

[northernladuk]

At £150 PD, would you not be better off going perm?

Have you seen what First Line Service Desk roles pay nowadays???