Umbrella vs Ltd Company

[biondani]

I'm starting a new contract next week (12 month contract) and have set it up through an umbrella. I will eventually want to move to a Ltd Company but want to know if it would be best to wait until the 12 months is up and move when I change contract or if I should take the plunge during the first 12 months.

What are people's opinions on this? BTW no way would I touch any offshore methods of payments, very close until I read up on BN66 though. Why are these unscrupulous companies so convincing on the phone until challenged

Ian

[Torran]

Just wait it's only 12 months. Nigh on impossible to make the switch mid contract anyway.

[biondani]

Just wait it's only 12 months. Nigh on impossible to make the switch mid contract anyway.

That was my understanding but glad someone else has confirmed this. I will wait the 12 months.

Thanks
Ian

[Alan @ BroomeAffinity]

If its 12months I'd say set up a ltd co. It'll be worth your while.

[pmeswani]

Just wait it's only 12 months. Nigh on impossible to make the switch mid contract anyway.

Not necessarily true. If there is a termination clause, tell the agency that you wish to terminate the contract and set a new one up in order to do business via a Ltd company. Some agencies will do it, some won't. (Ok, termination clause may not be the right way of doing it, but I'm sure there is a way).

[DaveB]

I'm starting a new contract next week (12 month contract) and have set it up through an umbrella. I will eventually want to move to a Ltd Company but want to know if it would be best to wait until the 12 months is up and move when I change contract or if I should take the plunge during the first 12 months.

What are people's opinions on this? BTW no way would I touch any offshore methods of payments, very close until I read up on BN66 though. Why are these unscrupulous companies so convincing on the phone until challenged

Ian

For a 12 month job I;d have gone ltd from the start. The agency wont care if you want to change as long as you are still earning them money ( unless they have a deal with brolly anyway ), you will need to check your contract with the brolly to see what the termination clauses are like.

[Clippy]

If its 12months I'd say set up a ltd co. It'll be worth your while.

WHS.

[Fred Bloggs]

WHS.

+1. No point fannying around lining their pockets, they're only parasites on your back if you're outside of IR35.

[biondani]

No agency involved, I am working direct for the client. I used an umbrella to make things easier for my first contract. I will see how things go and probably change around the time of the 6 month review.

Ian

[BolshieBastard]

Oh dear, another misguided person going the brolly route.

Will they ever learn?