Contracting (SAS/SQL)

[Rai]

Hi,

I'm hoping someone can help me.

I want to start up contracting. My skills are in SAS & SQL. The problem is I do not understand how contracting works. Key questions are:

Ltd company or umbrella company
Do I need to set up my own company? What if I take the umbrella company option? What do other contractors do? How do I decide what is better for me? How do Umbrella company work? What do you advise?

Agencies
If I apprached an agency to find me work, how does the payment process work? Who actually pays - it it the actual agency or the company that I contract at? Do you recommend any good agencies that I can contact? What are the key questions I should be asking to agencies? Do I find a contract first, then set up the company/go through the umbrella company or should I decide on this furst?

Tax issues
What is IR35? How would this affect me if I was to contract? How do I pass the IR35 rules? How can you fail the IR35 rules? Does this affect all contractors? How does it affect me if I had my own Ltd company? How would it affect me if I went through a Umbrella company?

SAS Contracting
Is anyone contracting with these skills?

As you can see my knowledge is very limited. If anyone could please provide some insight, that would be appreciated.

Many thanks,

Rai

[minstrel]

Do a bit of research. All these questions are answered in the stickies in the 'Accounting/Legal' section and the first timer guides.

But briefly in answer to your questions:

1. Limited company is better than umbrella (because you take home more money).

2. Don't bother looking for agencies - just look for jobs on Jobserve. Think about setting up company, but I wouldn't set it up until you find a contract.

3. Yes IR35 will affect you (if you set up a limited) - just do a search on IR35 and you'll find out what it's all about. IR35 won't affect you if you use an Umbrella company.

[NotAllThere]

3. Yes IR35 will affect you (if you set up a limited) - just do a search on IR35 and you'll find out what it's all about. IR35 won't affect you if you use an Umbrella company.

IR35 won't affect you because only because you'll be on PAYE. Financially, working through an umbrella is worse than working ltd and being under IR35.

NotAllThere

[minstrel]

IR35 won't affect you because only because you'll be on PAYE. Financially, working through an umbrella is worse than working ltd and being under IR35.

NotAllThere

Why do you say the OP is on PAYE? Most contracts/working conditions can be made to be outside IR35 if you make the effort.

OK, maybe I should have said:

Yes IR35 will affect you (if you set up a limited and take the money out via dividends)

I do agree that even if you are inside IR35, limited company is usually cheaper than umbrella.

[Rai]

Hi,

Thanks for getting back to me. I am in the process of doing my research however, no research will give me valuable information from the people who are contracting now hence, the questions.

Is there anyone who are contracting - using SAS. It would be good to hear from you.

Also, when you set up your own Ltd company and you contract through the agency via Total Jobs, who actuall pays you - is it the agency or the client you are contracting for?

I have also noticed that you have said that a Ltd company is better than the Umbrella - even if you are caught by IR35 - how can this be possible?

Thanks,

Rai

[minstrel]

Also, when you set up your own Ltd company and you contract through the agency via Total Jobs, who actuall pays you - is it the agency or the client you are contracting for?

Client pays agency and agency pay your limited/umbrella.

I have also noticed that you have said that a Ltd company is better than the Umbrella - even if you are caught by IR35 - how can this be possible?

Read this

[Flubster]

Is there anyone who are contracting - using SAS. It would be good to hear from you.