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[Biker Boy]

Hi guys, new to this so please be gentle. Looking at contracting at ways of running the payroll etc.

Companies looked at so far are Parasol IT, Green Lantern, Giant, Prosperity 4, Brooksons, Orange Genie and Plan IT.

Now thoroughly confused, so would appreciate any input as to who and why I should really consider.

[planetit]

Have you considered setting up your own Ltd company? It will probably be cheaper if you plan to contract over the medium term (especially if you are outside IR35), and you get to keep control over your own money.

It's not that complicated if you get a decent accountant to help you.

[Biker Boy]

I think I'm going to fall within IR35, so would prefer to take an umbrella type route. Thanks for reply though.

[malvolio]

Bing - does not compute...

IR35 is irrelevant in this decision; the only difference the umbrella makes is that you are an employee so IR35 doesn't apply, but only because you're paying full tax anyway on all your income.

Under a limited company, if you're really caught by IR35 (and it's getting increasingly easier to prove you are not, if you do the research properly), you're also paying full tax anyway on all income less 5%

The only difference is you're paying the umbrella to manage your money for you and they will be charging more than any sensible accountant. Economically, it's a no-brainer.

Go umbrella for a simple life and if you have no longer term aspirations at this time. IR35 is not part of the decision.

[ASB]

Malvolios right really.

You can probably find a "full service" accountant for about 100 pcm. They'll do everything for you. Payroll, Vat. CT returns etc etc.

No idea what sort of rate you are anticipating but I doubt you'll find an umbrella for this sort of money.

It's your decision of course, the simple fact of giving your money to sombody else and have them give back to you what they don't want could be worth it for you.

[BillHicksRIP]

If you want the quiet life as it's your first contract, I'd go the umbrella route before diving into the LTD. Co aspect. The others will disagree, but I felt it made the transition from permie a bit easier for me. And again, from personal experience, stay the hell away from P4, and give Parasol a look. Fantastic service since I've been with them.

[tim123]

There are two problems with the umbrella route that you don't have with the limited.

1) If the umbrella goes bust it takes your money with it.

2) If the agency doesn't pay, then *you* can't decide what action to take to chase it. This is down to the umbrella and if they just shrug and say we're doing nothing, you are stuck.

I imagine that 99% of umbrella customers don't suffer from either of the above but if you are in the unlucky 1% .....

tim

[mcquiggd]

Well, Ive followed both routes... I had the hard sell from Prosperity4 and just thought 'no way'. I went with Parasol IT and you can arrange a same day payment as soon as they receive funds from the client...

Their fees also include idemnity insurance. I would also say go this route the first time you go contracting just to make life simpler.. once you are sure of yourself, go the Ltd company route if it suits you as you will have a higher take home income.

[Mailman]

I think I'm going to fall within IR35, so would prefer to take an umbrella type route. Thanks for reply though.

If thats your accountant telling you then you need to find one that says your contract isnt IR35 caught!

And also set up your own limited company...then you dont have to worry about being f*cked around by brollies that dont pay up.

Mailman

[Biker Boy]

Thanks for advice so far, and I have also avidly read some of the other threads. Being new to this I'm still put off by setting up a Ltd Co, in case I decide not to stay contracting.

Next question has been answered by a couple of guys, but who are good Umbrellas, and who are really crap?

Cheers in advance.