Hello,
I hope someone can help me out with some good advice, my apologies for being long-winded.
I've been offered an IT contract role, starting with six months and then rolling afterwards. I'll be working at the client site during normal office hours, commuting via public transport every day. My wife is at home, not working.
My questions are:
1) Is it better to contract using an umbrella company, or to set up my own (UK) limited company and work through that?
2) Using the umbrella company, can I contract outside of IR35? If so, do I need to obtain appropriate insurance?
3) Using a limited company, can I contract outside of IR35? If so, do I need to obtain appropriate insurance?
4) Using a limited company, can I simply elect not to be VAT registered? I know there is a £58,000 turnover threshold, but if all one is doing is handing over the VAT then why bother? (I shouldn't have any significant VAT deductible expenses).
5) Are all non-VAT registered limited companies inspected annually by the Inland Revenue? I know that VAT registered companies are inspected by the VAT man (but I don't know how often).
6) Does my wife's current non-working status mitigate any tax/NI in any way, ie can we use her tax allowance at all, either under an umbrella or under a limited company?
7) For those who use umbrella companies, can anyone recommend a good umbrella company?
8 ) In incorporating a limited company, is it mandatory to declare the company's purpose?
9) The $64,000 question: I've heard of UK IT contractors using hybrid UK/offshore "solutions", does anyone have any thoughts to offer on this particular route?
My thanks in advance to those with sensible advice.
P Metcalfe
I hope someone can help me out with some good advice, my apologies for being long-winded.
I've been offered an IT contract role, starting with six months and then rolling afterwards. I'll be working at the client site during normal office hours, commuting via public transport every day. My wife is at home, not working.
My questions are:
1) Is it better to contract using an umbrella company, or to set up my own (UK) limited company and work through that?
2) Using the umbrella company, can I contract outside of IR35? If so, do I need to obtain appropriate insurance?
3) Using a limited company, can I contract outside of IR35? If so, do I need to obtain appropriate insurance?
4) Using a limited company, can I simply elect not to be VAT registered? I know there is a £58,000 turnover threshold, but if all one is doing is handing over the VAT then why bother? (I shouldn't have any significant VAT deductible expenses).
5) Are all non-VAT registered limited companies inspected annually by the Inland Revenue? I know that VAT registered companies are inspected by the VAT man (but I don't know how often).
6) Does my wife's current non-working status mitigate any tax/NI in any way, ie can we use her tax allowance at all, either under an umbrella or under a limited company?
7) For those who use umbrella companies, can anyone recommend a good umbrella company?
8 ) In incorporating a limited company, is it mandatory to declare the company's purpose?
9) The $64,000 question: I've heard of UK IT contractors using hybrid UK/offshore "solutions", does anyone have any thoughts to offer on this particular route?
My thanks in advance to those with sensible advice.
P Metcalfe
).
Comment