Best set up for low-income, low expenses consultancy?

[yasockie]

Hi all.

I plan to lay low for a year or maybe more and I expect my gross income not to exceed ca 40k pa.
I currently trade via Ltd company with flat rate VAT scheme, but I wonder if by using onther approach I might similar levels of net income without the hassle (which isn't much, but just researching)...

[LisaContractorUmbrella]

Inside or outside IR35?

[IR35 Avoider]

I don't know if low income is due to low rate or working part time. When working part-time through an umbrella, I found the rules governing employees quickly made me pay more NI than I would as director. So I thiink you do have to stick with having a company.

I claim no personal or company expenses (other than accountant fees) and signed up for a company with Crunch.co.uk as accountant. Even at only 40K a year, the profit you make from joining the flat-rate VAT scheme should more than pay their accountancy fees. (So that straight away makes them much cheaper than an umbrella.)

It's also a very low-hassle accounting, all returns are filed on-line by them, you just have to maintain your records in their web-based accounting system. They've even just implemented a link to Cater Allen so your bank transaction can get brought in automatically. Once you are set up and running, there's no paper work going back and forth between you and them, unlike the case with my previous conventional accountant, where I had to send everything one a quarter.

[yasockie]

I don't know if low income is due to low rate or working part time. When working part-time through an umbrella, I found the rules governing employees quickly made me pay more NI than I would as director. So I thiink you do have to stick with having a company.

I claim no personal or company expenses (other than accountant fees) and signed up for a company with Crunch.co.uk as accountant. Even at only 40K a year, the profit you make from joining the flat-rate VAT scheme should more than pay their accountancy fees. (So that straight away makes them much cheaper than an umbrella.)

It's also a very low-hassle accounting, all returns are filed on-line by them, you just have to maintain your records in their web-based accounting system. They've even just implemented a link to Cater Allen so your bank transaction can get brought in automatically. Once you are set up and running, there's no paper work going back and forth between you and them, unlike the case with my previous conventional accountant, where I had to send everything one a quarter.

Thanks.

I was pretty sure that Ltd is still the way to go and what you're describing is exactly the sort of hassle-free setup that I'm after...