is my contract worth opening a company?

[Old Hack]

thanks for pointing to this thread.
i know i can find general information over google. what i was expecting is some personal advice like minimum accountancy fee is 180 gbp per month and your salary is 2600 gbp per month and 1 time company opening fee is 100........ so your take home would be................... something like that...

Bob a job is coming up, ask one of them

[Zippy]

Seriously WTAS.

You need to look at the calculators, plug in the amounts you expect to be spending on travel and subistence (you do know you'll need receipts, right?) and compare the numbers.

[Jeremiah@RHJAccountants]

thanks for pointing to this thread.
i know i can find general information over google. what i was expecting is some personal advice like minimum accountancy fee is 180 gbp per month and your salary is 2600 gbp per month and 1 time company opening fee is 100........ so your take home would be................... something like that...

My suggestion would be to speak to an accountant and umbrella and see what advice they can give you on the take home pay for each.

Also do as much research as possible as the more you know the better look at calculators etc.

Last thing it all depends if you are going to be contracting for three months or longer as to which is better for you Ltd or Umbrella

[northernladuk]

thanks for pointing to this thread.
i know i can find general information over google. what i was expecting is some personal advice like minimum accountancy fee is 180 gbp per month and your salary is 2600 gbp per month and 1 time company opening fee is 100........ so your take home would be................... something like that...

That is where you do your homework unfortuantely. There are threads to help but at the end of the day it comes down to you. I did a thread for recommended accounts so that might help you pick on and then give them a call to answer your questions..

http://forums.contractoruk.com/accou...-requests.html

[Jessica@WhiteFieldTax]

But remember if it is a one off he can't claim travelling expenses I believe if recent threads are anything to go by.

But if he is one contract wonder, he wouldn't be able to with his own company either. Same issue, no "temporary" workplace just a "workplace".

I'ld still go umbrella for simplicity on 3 months.

NB my firm doesn't do 'brollys so I'm being reasonably objective...

[dogzilla]

What does it cost to incorporate on-line? Like £30? Get an reasonably priced accountant who's happy to work for 3 months at least , you never know it might get extended.

Still gonna be saving yourself a fair amount compared to PAYE. It just depends whether you can be arsed.

[captainham]

But if he is one contract wonder, he wouldn't be able to with his own company either. Same issue, no "temporary" workplace just a "workplace".

I'ld still go umbrella for simplicity on 3 months.

NB my firm doesn't do 'brollys so I'm being reasonably objective...

I'm not arguing with going brolly for 3 months, but I appear to be missing something here...if he goes LtdCo anyway, then he can still claim expenses, as long as he doesn't expect to be there for longer than 24 months?

[northernladuk]

I'm not arguing with going brolly for 3 months, but I appear to be missing something here...if he goes LtdCo anyway, then he can still claim expenses, as long as he doesn't expect to be there for longer than 24 months?

The argument is that if you are only doing one gig it is your permanent place of work. To us they are temporary as we move from client to client. I hadn't heard of this before but it came up in a brolly thread the other day and on the face of it makes sense but if you don't intend on doing one gig it isn't an issue.

[captainham]

The argument is that if you are only doing one gig it is your permanent place of work. To us they are temporary as we move from client to client. I hadn't heard of this before but it came up in a brolly thread the other day and on the face of it makes sense but if you don't intend on doing one gig it isn't an issue.

For a brolly I agree, but I didn't think the same applied to LtdCo as I can no find no mention of 'intention to pursue further contract' when talking about LtdCo's in the HMRC expense rules. Quite possibly a typically grey area, just the way HMRC likes it.

[Jessica@WhiteFieldTax]

For a brolly I agree, but I didn't think the same applied to LtdCo as I can no find no mention of 'intention to pursue further contract' when talking about LtdCo's in the HMRC expense rules. Quite possibly a typically grey area, just the way HMRC likes it.

Yep spot on. I've never seen it taken as a issue but it could be. My point is the Temporary Workplace rules apply just the same to a brolly as a PSC, just HMRC have special guidance for brollys non how to **apply** them. The playing field, roughly, should be level though.