my story

[sofuca]

ok i started contracting abot 2 months ago

Im only on £12ph and am with an umbrella company that charges me £22.50 a week for proccessing my wages, I currently take home about £320 a week after all deductions.

So the other day i was thinking, tulip thats £90 a month im paying just for someoen to proccess my wages.

So now im looking for an alternative. Is this Possible >>>>

set up limited company, get all my income paid into a business bank account and set aside exactly the same amount im paying out at the moment then at the end of the year hire an accountant to sort out my accounts?

Surlly paying someone a one off instead of every month is far cheaper, and my wages dont differ month to month as im set to 37 hours a week.

Cheers!

[ookook]

Try the search button, or better yet the sticky topic at the top of this very page.

[Money Money Money]

ok i started contracting abot 2 months ago

Im only on £12ph and am with an umbrella company that charges me £22.50 a week for proccessing my wages, I currently take home about £320 a week after all deductions.

So the other day i was thinking, tulip thats £90 a month im paying just for someoen to proccess my wages.

So now im looking for an alternative. Is this Possible >>>>

set up limited company, get all my income paid into a business bank account and set aside exactly the same amount im paying out at the moment then at the end of the year hire an accountant to sort out my accounts?

Surlly paying someone a one off instead of every month is far cheaper, and my wages dont differ month to month as im set to 37 hours a week.

Cheers!

Personally I would say Limited may not be the best option taking into account your rate.

Try These Guys. They are a little cheaper than you are paying.

HTH

[gingerjedi]

It’s not quite as simple as you describe though not far off, you'd be better paying an accountant on a monthly basis to keep things in order.

Nixon Williams charge £70 a month.

[blacjac]

ok i started contracting abot 2 months ago

Im only on £12ph and am with an umbrella company that charges me £22.50 a week for proccessing my wages, I currently take home about £320 a week after all deductions.

So the other day i was thinking, tulip thats £90 a month im paying just for someoen to proccess my wages.

So now im looking for an alternative. Is this Possible >>>>

set up limited company, get all my income paid into a business bank account and set aside exactly the same amount im paying out at the moment then at the end of the year hire an accountant to sort out my accounts?

Surlly paying someone a one off instead of every month is far cheaper, and my wages dont differ month to month as im set to 37 hours a week.

Cheers!

No.
If the accountant is doing a years worth of accounts (and returns and VAT and SA's etc..), then they will charge you the same amount for doing the work regardless of if they charge you monthly or anually.

I pay my accounant £80 a month. If I were to pay him annually the bill would be £960.

[pmeswani]

ok i started contracting abot 2 months ago

Im only on £12ph and am with an umbrella company that charges me £22.50 a week for proccessing my wages, I currently take home about £320 a week after all deductions.

So the other day i was thinking, tulip thats £90 a month im paying just for someoen to proccess my wages.

So now im looking for an alternative. Is this Possible >>>>

set up limited company, get all my income paid into a business bank account and set aside exactly the same amount im paying out at the moment then at the end of the year hire an accountant to sort out my accounts?

Surlly paying someone a one off instead of every month is far cheaper, and my wages dont differ month to month as im set to 37 hours a week.

Cheers!

Like someone has already said. Search the forum. But at the same time consider the following...

If you want to change Umbrella company, you would need to check the T's & C's of your contract with the Umbrella. If it states that you are obliged to stay with the Umbrella until the end of the contract, you will need to give notice to the agency and get a new contract in order to go to another Umbrella.

If you are looking to go Limited, then forget it. The amount of money you are earning alongside the length of your contract, it would not be worth the hassle. Accounting fees and other issues such as Insurance, setting up a bank account (in terms of time and effort) would outweigh the cost of going to an Umbrella. I was with Parasol when I first started contracting (3 month assignment). Albeit it was expensive, but it was worth it. Much cheapness does not mean muchness in value.

[s2budd]

My advice is on that rate stop right now and apply for permie roles.
It is no where near financially worth while being a temp/contractor on thoes rates.

[SomeoneElse]

My advice is on that rate stop right now and apply for permie roles.
It is no where near financially worth while being a temp/contractor on thoes rates.

And that's because you know what the equiv. perm rate would be..?

What a silly thing to say.

[Beefy198]

I too say at that rate it's not worth setting up a limited company. You won't really take home much more, and you're forgetting that that fee includes all the business insurances that you would need on top.

[chris79]

I too say at that rate it's not worth setting up a limited company. You won't really take home much more, and you're forgetting that that fee includes all the business insurances that you would need on top.

Agreed..

Limited company will be:-

1. ~£80 per month for accountant.
2. Public and employee liability insurance. ~£120/year
3. Professional indemnity insurance. ~£200-500/year (depending on what you do and the amount of cover you need)?
4. The hassle of closing the company once you no longer need it.

You should try and negotiate a higher rate, or find a new contract on a higher rate, or like already said go perm.. as the rate you are getting is probably on par with the perm equivalent. In fact you may be worse off by not having pension contributions, holiday, sickpay, etc. What exactly is it you do for £12/hour?