A little bit of advice needed please...

[Beefy198]

As this is your first contract chanes are that you fall outside IR35.

What planet are you on?

[zoooom]

Ok assuming i declare myself to be outside IR35, any accountants on here fancy giving a quote on how much I'd have to pay for 10 months of your magic?

[scooterscot]

Hello,

I am a contractor currently getting paid through giant as an umbrella company. This is my first contract and I work 37.5 hours a week for £15/hour. I worked out the other day I am taking home around about 60-65% of what I earn, which if i'm being honest seems absolutely tulip.

Given that there is 10 months left on my contract, is it worth me setting up a limited company? how much extra money am I likely to take home minus the additional costs? I have read internet guides and all the forum stickies but could do with an opinion based on how much I actually take home.

thanks!

Do you think you'll continue to contract beyond the end of this contract?

Giant are charging you 40-35% of your take home because it requires the least amount of input from you.

Yes you can increase this up to around 75-80%, but it will require effort, some more of your time, I'd talk to a local account if you are serious about taking home more money.

[PhilAtBFCA]

Limited Company

zooooom

Running your own business should not be just about the financials, you need to be prepared to take on the responsibility too, you cannot just delegate that to anyone else, although you can pay for reasonable and professional advice.

From the financial point of view its a mathamatical certainty that you will always be better off, regardleess of IR35 in a VAT registered Ltd Company assuming that you are comparing like for like in expenses, whih you should be as the legislation is the same in both Umbrella company, and your Own Limited Company.

There is a video explanation and a spreadsheet here which may help you make a decision.

Phil

[MPwannadecentincome]

assuming that you are comparing like for like in expenses, whih you should be as the legislation is the same in both Umbrella company, and your Own Limited Company.

Should be... but are not - I have a growing list of expenses I cannot claim in umbrella that I could as Ltd.

Of course I could claim these on my annual tax return - not sure yet whether it will get through but its an additional pain.

[Svalbaard]

Ok assuming i declare myself to be outside IR35, any accountants on here fancy giving a quote on how much I'd have to pay for 10 months of your magic?

Just for comparison can you let me know how Giant charge, is it a flat fee or is it a % of gross? Can't seem to find that info on their website.