Help ! - First time contractor

[slaser]

Hi,

I have just got my first contract this week starting next year.
I left my previous permie job 2 months ago, and I havent had a job since.
However at the moment I am in enviable position of having a contract starting at the beginning of the year and a permanent job offer from August. I am probably going to break my contract by August in order to take the permanent job offer.

I will also have to take a HUGE paycut when I take the permanent offer in August, but I am not too worried about that as the offer is with a prestigious organisation and there are a lot of benefits etc.

What will be the best tax efficient way considering I start the permanent job in August ? I have no ltd company or umbrella set up yet, and will have to next week.

[fiddleabout]

If it's only 6 months umbrella.

You will also be giving contractors a bad name if you jack it in before the period you sign for (even if there is a notice period). If there is no notice period and you still ditch it I hope they sue the @rse off you.