Full time job and short part time contract.

[JNinja]

Hi,

The figures:
I am currently earning 45k in my permee full time job.
I have picked up a short term contract at £300 per day.
I will do 2/3 days a week over a 3 or 4 week period.
I may get future contract work.

What is the best option regarding reducing my tax?

I searched the net and thought about using an umbrella (composite) but then I realised that it isn't possible any more.

My current plan is to work as a sole trader and take the 40% tax hit. If I get more work I will use an umbrella or set up a ltd.

Or is it worth forming a ltd company now anyway?
Will an umbrella be interested anyway? I will give them a call tomorrow.

What do you think?


Cheers,
JNinja

[NotAllThere]

If you think it will likely you'll have a few years of contracting work, then go ltd. Otherwise, if you can, stay sole trader.