perm to contracting - best option going forward

[burnzdog]

Hello all,

Quite new to this so please excuse my ignorance. I have been working on a permanent job for a number of years and have just taken the leap over to contracting. I have a contract for just 3 months paying over £250 a day. Id like to work out my best option for tax relief. Worse case scenario is I complete the 3 months and then potentially go back to perm, likely is that I carry on contracting. What would be best way in this scenario to minimize my tax liabilities. For arguments sake, I wont be incurring any mileage or real costs during this contract.

Your help appreciated.

[northernladuk]

Go umbrella for the first gig then. Non of the hassles of starting up and potentially closing a LTD. Even if you do stay contracting it's an easy intro while you learn the ropes. Once you've decided to stay them just start a LTD.

[stek]

Limited or Brolly? Opted-in or opted-out? IR35 caught? What does your accountant say?

[LondonManc]

If you're simply dipping your toe into the water, brolly would be a far more straightforward option, especially for a 3-monther given that an accountant would charge for a full year as they would have to do year-end work regardless of how long you trade for; throw in same for any required insurances and it becomes a no-brainer to go brolly.

[burnzdog]

If you're simply dipping your toe into the water, brolly would be a far more straightforward option, especially for a 3-monther given that an accountant would charge for a full year as they would have to do year-end work regardless of how long you trade for; throw in same for any required insurances and it becomes a no-brainer to go brolly.

But wouldn't the amount saved through a ltd company (compared to a brolly) for just 3 months cover the expense of paying for an accountant, the ltd company, and cost of dormancy for the rest of the year?

[Old Greg]

But wouldn't the amount saved through a ltd company (compared to a brolly) for just 3 months cover the expense of paying for an accountant, the ltd company, and cost of dormancy for the rest of the year?

Will the contract be inside or outside IR35?

[jmo21]

If you're simply dipping your toe into the water, brolly would be a far more straightforward option, especially for a 3-monther given that an accountant would charge for a full year as they would have to do year-end work regardless of how long you trade for; throw in same for any required insurances and it becomes a no-brainer to go brolly.

But wouldn't the amount saved through a ltd company (compared to a brolly) for just 3 months cover the expense of paying for an accountant, the ltd company, and cost of dormancy for the rest of the year?

Do you not believe the post you quoted?

[burnzdog]

Do you not believe the post you quoted?

Its not a matter of believing.

[SueEllen]

But wouldn't the amount saved through a ltd company (compared to a brolly) for just 3 months cover the expense of paying for an accountant, the ltd company, and cost of dormancy for the rest of the year?

No.

[burnzdog]

No.

Can you elaborate on your answer?