Best timing to jump the SDC ship ?

[Snorky]

I've been contracting (shame the waist isn't :-) ) - for nigh a decade now via Umbrella PAYE. Mostly without incident as expected. Horses for courses...

I live in a rural area (Northumberland) some distance (30 - 100+ miles away) from the nearest hirer of IT contractors.
By that I mean the home commute is 30-40 miles, but then after that it's 100-300 miles.

I've had years of the Mo - Fri commute with significant T & S expenses, so it goes. Currently I'm commuting from home, no real costs as such, and > 2 years at current client.

Due to my location I *will* have to travel long distances in the future in order to secure work, but due to the genius that is SDC I won't be able to afford to via Umbrella. So I am preparing to switch to Ltd Co. - no surprise yet. I can not afford to nor want to relocate where I live.

My question is - is there a better, good/bad time to switch ? As things stand now I've no T & S costs so can just hang fire until such time as I do have to stay away from home overnight Mo-Thu, or is it better done sooner - e.g. some obscure piece of legislation one might fall foul of leaving the Umbrella.

I'm in no desperate hurry as its a case of "devil you know" right now with Umbrellas R Us, and I'm not fussed about the Ltd Co. NI/dividend/salary-split hoop-la. Did all that before via Ltd Co for a few years. Happy to pay fair amount of tax, and just claim the major expenses; long-distance commute + accommodation.

Gracias.
David.

[TykeMerc]

I'm not aware of any immediate reason for you to either delay or hasten the switch to YourCo Ltd.

The only potential real fly in the ointment would be your current contract, a fair number of Agencies and Clients can be twitchy about issuing a new contract outside of a renewal, not a difficult problem to manage of course. May save some accountancy costs on a YourCo that's not actually contracting at the moment.

[Snorky]

a fair number of Agencies and Clients can be twitchy about issuing a new contract outside of a renewal..

Yes, I checked with the agent this morning, its water off a duck's proverbial to them, so it would be simple to change over on next renewal.

[northernladuk]

I never remember the exact situation as it seems to have changed but if you move from umbrella to LTD with the same client the 24 month rule could be an issue. I always thought the last gig with an umbrella defaulted to a permanent base so no more expenses for the LTD regardless if 24 month but TF keeps correcting me on something. Whatever it is make sure you check carefully.

[Snorky]

the last gig with an umbrella defaulted to a permanent base so no more expenses for the LTD regardless if 24 month

Thanks, will check.

Based on my current situation, short home commute, I'm no better off by switching to MyCo Ltd sooner, so until travel distance plays a part (which will be with a new client anyway) - I'll hang fire.

Or just have everyone relocate to Larndon & live in one huge contractor house... 'SDC Towers'

[Yonmons]

Thanks, will check.

Based on my current situation, short home commute, I'm no better off by switching to MyCo Ltd sooner, so until travel distance plays a part (which will be with a new client anyway) - I'll hang fire.

Or just have everyone relocate to Larndon & live in one huge contractor house... 'SDC Towers'

Your the opposite to what I was under the umbrella. I was commuting and incurring a 12/13 hrs day with the 9 on site the loss of the T@S was to big a hit for me. If you are local stick as you are (I would have done) it's a no brainer. I am on the bench having just returned from the contractors end of contract holiday with Mrs Yonmons. I'll make the decision on if I go Ltd or Umbrella with the circus of the next job.

[Snorky]

Your the opposite to what I was under the umbrella. I was commuting and incurring a 12/13 hrs day with the 9 on site the loss of the T@S was to big a hit for me.

Yes, been there. Had 4 years of 100, 200, 350 mile weekly commute. Would be financially crippling now.

Good luck with your next venture.