start with umbrella then switch to ltd?

[Support Monkey]

I think you should start as you mean to continue. I get the vague feeling you are keen to use a ltd company, but are a bit put off by it at this early stage. Put some work in now - read the new starters guide, speak to some contractor accountants, and get a feel for how the whole thing works. Once you have done it for a few months, and your accountant has answered all your questions and given you good feedback, it will feel a lot easier.

There is some admin involved (and responsibility) - using an umbrella is easier - but if you can get your head around that and are happy with it, our clients find contracting through their own ltd company to be rewarding.

I disagree, get a contract get an umbrella and get out there working then you can work out the pros and cons of limited, yes your not going to earn the money with an umbrella but its a dam site easier to walk away from, and with the doubts you have spend some time studying and understanding all the issues before entering into a Ltd company setup for the sake of a few extra quid over the period

[VectraMan]

I did my first 3 monther with an umbrella, but then went limited. Lots of good reasons as has been said, but ultimately, I came to regret the couple of thousand pounds of unnecessary tax I paid.

But I do think if I was ever in ever in the situation of not being able to avoid IR35, I would just use an umbrella again.

[kingcook]

I disagree, get a contract get an umbrella and get out there working then you can work out the pros and cons of limited, yes your not going to earn the money with an umbrella but its a dam site easier to walk away from, and with the doubts you have spend some time studying and understanding all the issues before entering into a Ltd company setup for the sake of a few extra thousand quid over the period

FTFY.

I did umbrella at first, then switched to ltd co. Wished i'd have done ltd co straight away. It's not that difficult. I had an accountant do all the work for me (Nixon Williams, but any who frequent here would be just as good I guess), and it was included as part of the monthly fee. OK i had to pay double first month IIRC, but that was peanuts compared to the £thousands I gained.