New to Contracting

[griffithssl123]

Hi I need help.... Ive just been offered a contracting role at £23per hour!!
I will be working a 48Hr week.... can anyone suggest whether to use an umberella company or set up my own Ltd company..

Can anyone tell me what % rerurn I can expect on both schemes as I want to earn as much as I can!!!!!

Can anyone suggest who to use?? Does anyone use the Sanzar partnership.

I havent got a clue what to do.

Your help is appreciated.

[malvolio]

Thud...thud...thud....

Read the first timer guides we keep harping on about - use the Search engine to find them

Use an umbrella. Look to retain around 65% of your gross.

Avoid Sanzar or anyone else who says you can earn lots more than that using their 'schemes' or expense dispensations. You can't.

Come back when you have a better idea what you're getting into, when you can think about setting up your own company.

[chris79]

Limited company will get you better returns, but there's a lot more paperwork and understanding to operate the company required. It also gives you control over how much you pay yourself, but judging by your lack of experience and knowledge you would need to hire an accountant to help you do all this.. you also need business insurances, a business bank account, etc.

Going Umbrella they will take care of everything for you, but you will be paying full PAYE as if you were a company employee.

Also if the contract you have falls INSIDE IR35 then you should just go umbrella as running through a limited will give no extra benefit. If your contract falls OUTSIDE IR35 then you can take a mix of wage and dividends to get the best tax advantage using the limited company route.

[thunderlizard]

Set up a limited company if you want to keep contracting for any length of time, regardless of what you end up doing with the tax. I sure as mustard didn't become a contractor so I could let somebody else control my money.

You will have more forms to fill in and more responsibility, but you can get an accountant to do the lion's share. Umbrellas do mess up sometimes, through incompetence or insolvency, and I'd have to be on the receiving end of that.

[DiscoStu]

Hi I need help.... Ive just been offered a contracting role at £23per hour!!
I will be working a 48Hr week.... can anyone suggest whether to use an umberella company or set up my own Ltd company..

Can anyone tell me what % rerurn I can expect on both schemes as I want to earn as much as I can!!!!!

Can anyone suggest who to use?? Does anyone use the Sanzar partnership.

I havent got a clue what to do.

Your help is appreciated.

Don't. With a big capital D.

[BrilloPad]

Hi I need help.... Ive just been offered a contracting role at £23per hour!!
I will be working a 48Hr week.... can anyone suggest whether to use an umberella company or set up my own Ltd company..

Can anyone tell me what % rerurn I can expect on both schemes as I want to earn as much as I can!!!!!

Can anyone suggest who to use?? Does anyone use the Sanzar partnership.

I havent got a clue what to do.

Your help is appreciated.

Personally I use montpelier - similar setup to Sanza/dmz

It causes ALOT of controversy on these boards - I would only suggest using them if you like high risk and sleep well under pressure! That said, the returns are mouth watering......

[basshead]

Personally I use montpelier - similar setup to Sanza/dmz

It causes ALOT of controversy on these boards - I would only suggest using them if you like high risk and sleep well under pressure! That said, the returns are mouth watering......

have to be put away in case HMRC come knocking

[chef]

ok, i'll explain..

the reason for malvolio's "thud... thud... thud" is that's the sound of his head being beaten to a pulp against something hard, the reason for that is that we get A LOT of people finding this board posting for the first time with something almost identical to what you've posted..

1st rule of contracting grow a thick skin, you'll need it.. contracting is not like a package tour holiday, there is no hand holding or tour bus to make things easier..

for some other helpful advice then rather us repeat ourselves over and over again, the site has a helpful thing called Search where all your questions have already been answered multiple times..

the reason for the harshness of the reply is quite simply why should we waste our time repeating our years of advice over and over just so you have an easy time when you've put no effort in yourself in trying to answer your own questions? bend over we'll wipe your arse for you aswell, i tell you what, tell us what your doing and one of us will go and do the work on your behalf and most likely better and simply send you a bill for work done?

<Chef in "not getting any" mode >

rant over..

oh and welcome and good luck

[chef]

Thud...thud...thud....

nearly brought tears to my eyes

[pmeswani]

Hi I need help.... Ive just been offered a contracting role at £23per hour!!
I will be working a 48Hr week.... can anyone suggest whether to use an umberella company or set up my own Ltd company..

Can anyone tell me what % rerurn I can expect on both schemes as I want to earn as much as I can!!!!!

Can anyone suggest who to use?? Does anyone use the Sanzar partnership.

I havent got a clue what to do.

Your help is appreciated.

You don't state how many months you will be doing the role for. Over 12 months your salary is just short of £53k. I don't know what minimum annual salary one should have in order to make it worth their while going Ltd. As already stated, read the guides on the homepage of this site and dig around whether or not it is worth going Ltd. Check the IR35 guide to see if your contract falls foul of the IR35 rules. Get your contract checked out by an IR35 specialist and then decide. If you are IR35 compliant (or whatever everyone else calls it!!), then it may (and I emphasise may) Ltd may be worth it. You may be entitled to get your IR35 fees repaid. Don't do Ltd for the sake of doing Ltd. Only do it if you are going to benefit from it. Also, shop around for Umbrella companies... some may offer better deals and services than others.