Tier2 vs Contractor Limited Company

[asisko]

Hello all

As a Turkish national, I have 2 choices to work in the UK as an IT contractor

- to set up my own contractor limited company
- to be sponsored by an umbrella company

How's the legal schema like when I setup the contractor limited ? Is it possible that my own company will bill the company / agency and get paid for my consultancy ?

Which one do you suggest ? To be sponsored by an umbrella company and get contracts or to set up a company under ECAA agreement ?

Thanks in advance

[northernladuk]

Anything in this lot that helps you?

tier 2 site:forums.contractoruk.com/ - Google Search

[asisko]

How's the legal schema like when I setup the contractor limited ? Is it possible that my own company will bill the company / agency and get paid for my consultancy ?

I could not find an answer for the question above.

[prozak]

Hi Asisko,

welcome.

What the previous poster is trying to tell you is that there is a lot of reading you need to do as the question you asked is very general.

Better to do a bit of research and come back with specific questions.

I have one for you.
Will you get a work Visa if you do not get sponsored by the umbrella? (or are you referring to some other sponsorship?)

[stek]

ECAA rules are a bit odd, do you have the right to work in UK already and are you in the UK now?

You can only do ECAA for 12 months as I understand it...

[prozak]

How's the legal schema like when I setup the contractor limited ? Is it possible that my own company will bill the company / agency and get paid for my consultancy ?

I could not find an answer for the question above.

To answer this question.

Yes you would set up a limited company and if there is an agency involved you would invoice the agency (likely) and they would invoice the end client. you would have a contract with the Agency.

The great thing about the UK is that setting up a company is cheap and easy - but you need to make sure you understand the ramifications and your responsibilities of doing so. Some people opt to use an umbrella company because they find this too difficult or complex (it isn't) and / or get an accountant.

[stek]

To answer this question.

Yes you would set up a limited company and if there is an agency involved you would invoice the agency (likely) and they would invoice the end client. you would have a contract with the Agency.

The great thing about the UK is that setting up a company is cheap and easy - but you need to make sure you understand the ramifications and your responsibilities of doing so. Some people opt to use an umbrella company because they find this too difficult or complex (it isn't) and / or get an accountant.

But only if the OP has right to work in UK, which for Turkish Citizens is not automatic. OP can switch to (but not from visitor) or apply for Leave to Enter as Turkish ECAA Businessperson but only for 12 months - could take most of that to find a role for a newbie to UK contracting.

[AnnaO]

Hi Asisko

If I were you I would start with an umbrella company as they can do everything for you. You can always move to a ltd co later. With a limited company, it took me few weeks to get a business bank account set up, plus you will need to find a decent accountant. It is easier to start with an umbrella - in my opinion.

[stek]

Hi Asisko

If I were you I would start with an umbrella company as they can do everything for you. You can always move to a ltd co later. With a limited company, it took me few weeks to get a business bank account set up, plus you will need to find a decent accountant. It is easier to start with an umbrella - in my opinion.

But the OP doesn't have the right to yet on the face if his post....

[asisko]

Thanks everyone

As Turkish national, I will be able to setup my company under ECAA agreement. I will initially have 12 months visa. With this visa it is possible to build a ‘one man’ contracting business. But you must work on the business full time and you cannot take any employment that is not directly related to the business. After first successful year of business, the visa will be extended for 3 years.

I understand, it is legal for me to bill the agency for my service and the agency will be billing the client. Or if I get the contract without an agency, I will be billing the client. Is that right ? Thanks again ?