Moving from Umbrella to Limited

[Kylie4485]

Hi Guys

I have been wondering. How easy is move from being an Umbrella employee to setting up your own limited company? Do you think it would be wise to finish your current gig before you set one up?

Or visa versa has anyone Had their own limited company and moved to umbrella?

[SueEllen]

Other people have done it.

Just read your umbrella company contract and see if there are any penalties for getting out of it.

Otherwise find an accountant* and set up your limited. (Lots of accountants help with company formation.) Then after you have a business bank account (try and do it in person as it's quicker) tell the agency they need to bill your limited rather than the umbrella and submit invoices to that effect.

*HINT: search the accounting/legal board for accountants.

[ghl]

It's dead easy to move from brolly to Ltd Co. I did it last month - midway through a contract.

I waited until I'd received any payments due to me from the brolly then informed them I was leaving as I was going Ltd so could I have my P45 please. No probs other than having to get agency to send letter to brolly as I was not at the end of my contract.

Then got an accountant (Nixon Williams) to set up Ltd Co and business bank account with Cater Allen. All done and dusted within the week.

Then I set up VAT on FRS. I'd heard horror stories of it taking months to register and then get FRS approval but it took a total of 9 days from posting the forms. I don't know whether this helped with the speed of turnaround, but NW advised me to send a copy of my current contract with the application as proof of trading so the VAT people wouldn't need to ask further questions.

Hope this helps.

[Bluebird]

Hi Guys

I have been wondering. How easy is move from being an Umbrella employee to setting up your own limited company? Do you think it would be wise to finish your current gig before you set one up?

Or visa versa has anyone Had their own limited company and moved to umbrella?

It would be easier to do at the end of a gig, don't forget if you close down umbrella and set up Ltd your agency will need to produce a new contract between your ltd & them - most are ok about this but some get pi$$ed as they don't get paid for it....

How long have you got left ?

[Kylie4485]

Sorry bluebird, I should have said

I am one of the people who runs umbrella supermarket.

I was just curious, I don't know a great deal on limited companies (stresses and strains, if there is any?) and would just like more info.

Is it really worth it?

would be an interesting debate

[vhadiant]

Sorry bluebird, I should have said

I am one of the people who runs umbrella supermarket.

I was just curious, I don't know a great deal on limited companies (stresses and strains, if there is any?) and would just like more info.

Is it really worth it?

would be an interesting debate

Hardly any stress and hardly any strains. It's just a bit more paperwork every month, but definitely worth the little bit of effort. Even if you're inside IR35 it's still better to do this from your ltd co.

[Bluebird]

Sorry bluebird, I should have said

I am one of the people who runs umbrella supermarket.

I was just curious, I don't know a great deal on limited companies (stresses and strains, if there is any?) and would just like more info.

Is it really worth it?

would be an interesting debate

I moved from Umbrella to Ltd some time ago - it was all ok as I had my Ltd up and running before I told the umb what was happening.

I also ensured that the last payment was rec'd from the Umb.

One problem I did get that was afterwards, when I needed info on things like P11d the umbrella were unhelpful - they stated that they wanted to charge me as I was no longer a client of theirs, I did point out that the info I required related to a period when as Iwas a client, and as I'd paid for their services they should still provide the info without charge.

They did in the end but it was a bit of hassle.

In answer to your last point - it's definitly worth it.

[Kylie4485]

Thanks Guys for your comments.

Did you wait until you had finished your gig? You did you ask your agency to re-write existing contract?

What Umbrella company was you with? if you care to say.

Thanks

Kylie

[vhadiant]

I didn't wait until my contract finishes, just ask your agent to re-write the contract.

[Kylie4485]

Thanks vhadiant, I bet they were p****d with you lol.

I would be interested if it is as easy the other way around, I wonder if anyone on this board has made that transaction.