As of July, I am intending on coming over from Australia and have a working holiday in the UK for a period of between 1-2 years. I have a UK passport, though I have never been to the UK before. I am not in the IT field, so perhaps I'm on the wrong forum, but it seems that the issues around contracting that I am researching are applicable to my situation. I will be looking for contract positions, via recruitment agencies, in the public sector in the area of policy development (most likely clients will be within the social housing sector, or related area, such as a central govt dept, local council or NGO).
Gauging positions / pay rates on my current level of experience, I would envisage winning positions around the 32-34 BPD pa mark (or 2,600-2,800 BPD per month, 16-17 BPD per hr). It is highly probably that I will be working within IR35, in that I would not meet the HMRC definition of 'self employed'.
I was initially attracted to the option of being employed via a PAYE Umbrella and being able to claim back some expenses, whilst not as tax effective as setting up my own Limited Company, would at least be better than being paid direct by the Recruitment Agency. I understand though that even falling within IR35, if I went the Limited option I would pay tax and NI on 95% of my contract rather than the 100% I would with an Umbrella.
Would appreciate some advice on what people think my best option in terms of Umbrella v Ltd (seems like an age old question I know) for my particular circumstances.
Gauging positions / pay rates on my current level of experience, I would envisage winning positions around the 32-34 BPD pa mark (or 2,600-2,800 BPD per month, 16-17 BPD per hr). It is highly probably that I will be working within IR35, in that I would not meet the HMRC definition of 'self employed'.
I was initially attracted to the option of being employed via a PAYE Umbrella and being able to claim back some expenses, whilst not as tax effective as setting up my own Limited Company, would at least be better than being paid direct by the Recruitment Agency. I understand though that even falling within IR35, if I went the Limited option I would pay tax and NI on 95% of my contract rather than the 100% I would with an Umbrella.
Would appreciate some advice on what people think my best option in terms of Umbrella v Ltd (seems like an age old question I know) for my particular circumstances.
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