Changing from Umbrella to Limited!

**Jessica@WhiteFieldTax** · 10 March 2013, 22:03

Is it worth it? Depends on IR35. If likely to be outside, yes, if caught, probably not.

Register as self employed for computer repairs? Probably not, as you can run them through your company. At law you are then not self employed, but a employed as a director of a company. Only issue likely to be vat, if co is vat reg and your repair customers are retail - the vat makes you more expensive or cuts your profit if you absorb it.

A small point, don't refer to paying your "wages" into your company - makes me squirm

**LisaContractorUmbrella** · 11 March 2013, 08:43

Do you know what your IR35 position is? Are there others working with you doing the same job as permanent employees? Do you report to a line manager? Could you provide a substitute if you could n't work? Are you told what work you will be doing each day? etc etc. There's loads of information about it on the forum - if you are outside then find yourself a good specialist accountant and try running your own Ltd Company - if you are inside there won't be a great deal of financial benefit.

**Wanderer** · 11 March 2013, 11:07

Originally posted by Vdubster187 View Post

The LTD company is set and I would also like to offer a computer repair service under this name as well as putting my monthly contract wages though this, is this possible?

If I am offering a computer repair service as well as my contract, would I need to register as self employed?

Is it worth just hiring an accountant and doing away with the umbrella company?

Have a read of the First Timers guide, the link is on the right though it probably won't directly answer your question it has a lot of useful information in it.

If you are getting a small business up and running alongside your contracting work then I'd suggest that you want to be incorporated as a LTD company rather than umbrella and self employed for the repair business.

Having a company would allow you to invest your contracting income into growing your repair business. It's also more tax efficient if you are outside IR35 - you do know what IR35 is don't you.

Have a chat to one of the recommended accountants and see what they say.

**TheFaQQer** · 11 March 2013, 11:15

Originally posted by Vdubster187 View Post

On this kind of contract would you advise this?

Probably, but it depends on your income as well. Are you going to be over the VATtable threshold? If so, then being on FRS (if this makes sense) can make a bit of money for you. How will accountancy fees compare to the cost of the umbrella? If it's not close, then no.

Originally posted by Vdubster187 View Post

The LTD company is set and I would also like to offer a computer repair service under this name as well as putting my monthly contract wages though this, is this possible?

Yes

Originally posted by Vdubster187 View Post

If I am offering a computer repair service as well as my contract, would I need to register as self employed?

No - you aren't self-employed. You are employed by a limited company, where you own 100% (or whatever) of the shares.

Originally posted by Vdubster187 View Post

Is it worth just hiring an accountant and doing away with the umbrella company?

Depends on the sums - see above.

**Vdubster187** · 11 March 2013, 15:16

Originally posted by Jessica@WhiteFieldTax View Post

Is it worth it? Depends on IR35. If likely to be outside, yes, if caught, probably not.

Register as self employed for computer repairs? Probably not, as you can run them through your company. At law you are then not self employed, but a employed as a director of a company. Only issue likely to be vat, if co is vat reg and your repair customers are retail - the vat makes you more expensive or cuts your profit if you absorb it.

A small point, don't refer to paying your "wages" into your company - makes me squirm

Thank you Jessica, great advice

**Vdubster187** · 11 March 2013, 15:30

Originally posted by LisaContractorUmbrella View Post

Do you know what your IR35 position is? Are there others working with you doing the same job as permanent employees? Do you report to a line manager? Could you provide a substitute if you could n't work? Are you told what work you will be doing each day? etc etc. There's loads of information about it on the forum - if you are outside then find yourself a good specialist accountant and try running your own Ltd Company - if you are inside there won't be a great deal of financial benefit.

Hi Lisa,

I am not aware of my IR35 position, I will email the agency and ask. There are others doing the same job on a permanent job but in different areas of the country. I have a line manager yes, No I couldn't supply a substitute its me alone. I get emailed jobs for the following day so yes.. I will have a god look around thank you

thanks for all your advice

**Vdubster187** · 11 March 2013, 15:32

Originally posted by Wanderer View Post

Have a read of the First Timers guide, the link is on the right though it probably won't directly answer your question it has a lot of useful information in it.

If you are getting a small business up and running alongside your contracting work then I'd suggest that you want to be incorporated as a LTD company rather than umbrella and self employed for the repair business.

Having a company would allow you to invest your contracting income into growing your repair business. It's also more tax efficient if you are outside IR35 - you do know what IR35 is don't you.

T
Have a chat to one of the recommended accountants and see what they say.

Hi wanderer,

Thanks you I will take a look at the link.

Again great advice, what I would do without the great help from people on here.

Thanks again

**TheFaQQer** · 11 March 2013, 15:59

Originally posted by Vdubster187 View Post

I am not aware of my IR35 position, I will email the agency and ask.

NO, NO, NO!!!

Read up on IR35. Find out what the conditions are and determine whether you think you are caught or not - it's you and your tax position that you need to know. The agent doesn't know, or even care, how you work.

It's about the working conditions - so make sure you know what to look for, and then make an assessment.

Originally posted by Vdubster187 View Post

There are others doing the same job on a permanent job but in different areas of the country. I have a line manager yes, No I couldn't supply a substitute its me alone. I get emailed jobs for the following day so yes.

When you say you couldn't supply a substitute, does that mean "the client won't allow me to send a substitute" or "I only have me working for my business so there is no substitute I could send"? There's a BIG difference between the two!!

Does the client tell you how to do the work (ie. exercise direction and control)? Is the client obliged to offer you work, and do you have to accept it? Does the client pay you if there is no work to do?

Read the first timers guides. Read up on IR35.

Since you don't know what IR35 is, then the answer to the question of whether you should ditch the umbrella and run your own business is ABSOLUTELY NOT.

**Vdubster187** · 11 March 2013, 16:14

Originally posted by TheFaQQer View Post

NO, NO, NO!!!

Read up on IR35. Find out what the conditions are and determine whether you think you are caught or not - it's you and your tax position that you need to know. The agent doesn't know, or even care, how you work.

It's about the working conditions - so make sure you know what to look for, and then make an assessment.

When you say you couldn't supply a substitute, does that mean "the client won't allow me to send a substitute" or "I only have me working for my business so there is no substitute I could send"? There's a BIG difference between the two!!

Does the client tell you how to do the work (ie. exercise direction and control)? Is the client obliged to offer you work, and do you have to accept it? Does the client pay you if there is no work to do?

Read the first timers guides. Read up on IR35.

Since you don't know what IR35 is, then the answer to the question of whether you should ditch the umbrella and run your own business is ABSOLUTELY NOT.

Ok I'll hold back on the email, thanks for the heads up

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When you say you couldn't supply a substitute, does that mean "the client won't allow me to send a substitute" or "I only have me working for my business so there is no substitute I could send"?  There's a BIG difference between the two!!

Its only me working for my business so far, I have people who would help out if need be.

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Does the client tell you how to do the work (ie. exercise direction and control)?  Is the client obliged to offer you work, and do you have to accept it?  Does the client pay you if there is no work to do?

Yes I have set procedures I have to follow, I have to accept as I am contracted for the month and if there is no work I still get paid.

Thanks again

Changing from Umbrella to Limited!