Limited comany or Umbrella ?

[leepy1]

I am considering a move from permanent to contracting and it seems that the first major decision to make is whether to form a limited company or work through an umbrella. I would appreciate some opinions on which is the best route to take for newcomers at the moment.

Thanks in advance.

[DJChrisAngel]

I was in the same position a couple of months ago and decided to go for the umbrella option for now because there's virtually no hassle involved. Registering with a company like ParasolIT is easy and you can do almost everything online. They are cheap too (around £45 if you get paid monthly).

I am going to look into the option of setting up my own ltd co when my current contract expires.

[Debbie Reinvented]

Limited Company if you're outside IR35 , umbrella if you're inside

[jedsman]

Having just started contracing via an Umbrella company, one question I have before I go limited, is how do you know if a contract is going to get caught by ir35, and what can you do to avoid it?

Also have many contractors moved from limited to umbrella companies?