Moving from Umbrella to Ltd

[Wanderer]

1. Wait till they have paid you everything they owe you.
2. Give them a month's notice that you are resigning from the umbrella (it doesn't matter that you will already be well into your new contract by then)
3. They will send you a P45

Simples.

If they ask you why you aren't working then just tell them that your contract finished. Don't tell them about the new one or your LTD. In fact avoid saying anything to them until you have been paid up if you can.

I think the main reason they don't want you working elsewhere is that it will screw up your PAYE and complicate things for them. No need to name and shame them unless they get shirty with you or don't pay you and it seems unlikely that this will happen...

[karl1984]

1. Wait till they have paid you everything they owe you.
2. Give them a month's notice that you are resigning from the umbrella (it doesn't matter that you will already be well into your new contract by then)
3. They will send you a P45

Simples.

If they ask you why you aren't working then just tell them that your contract finished. Don't tell them about the new one or your LTD. In fact avoid saying anything to them until you have been paid up if you can.

I think the main reason they don't want you working elsewhere is that it will screw up your PAYE and complicate things for them. No need to name and shame them unless they get shirty with you or don't pay you and it seems unlikely that this will happen...

I think they also have this requirement so it's difficult to change Umbrella companies part way through a contract.

One last question (for now anyway ) does the delay in supplying my Accountant/New Ltd with a P45 cause any tax issues? e.g. I know permanent staff sometime have tax issues due to P45 delays when moving jobs.

Thanks all again and I'm making good progress with the Ltd setup. I just need to secure the necessary insurance(s) and have my contract IR35 reviewed (and possibly insured) and it's all onwards and upwards...

[Wanderer]

does the delay in supplying my Accountant/New Ltd with a P45 cause any tax issues? e.g. I know permanent staff sometime have tax issues due to P45 delays when moving jobs.

You can fill in form P46 if you don't have a P45, so even in a permie job so it's not such a big problem. The main reason employers like to have a P45 is so they can get their paperwork straight and the employee pays the right amount of PAYE from their first pay packet. Permies tend to be upset if they pay the wrong amount of tax from one week to the next. The tax rate is dependant on your salary/PAYE/NI paid in the tax year to date so it's important that the new employer gets the P45.

As a company director with an outside IR35 contract, the best thing to do is not to draw any salary until you get your P45 (you can take dividends so you won't starve!) and then get payroll setup once the P45 comes through. The only time to panic would be if you wanted to take a big salary before the end of the tax year (unlikely if you are outside IR35 as you will mostly take dividends) so don't worry about it.

Get your accountant engaged and they should be able to give you a definitive answer, but I'm pretty sure that's the gist of it.

Good luck!