Contracting Newbie - Guidance needed!

[pFennig]

We Share Our Views

This is a forum to share views right?

Well, yes and no.

Like all moderated fora, this one likes you to 'share views' only that coincide with the moderators' - or some particularly inane yet favored posters' - views.

[cojak]

Well, yes and no.

Like all moderated fora, this one likes you to 'share views' only that coincide with the moderators' - or some particularly inane yet favored posters' - views.

I think you'll find that moderators like you to 'share views' if you are experienced and your views have credibility.

3 month newbies who do not have accounting experience pontificating on take home pay do not count.

[LisaContractorUmbrella]

To reply your questions -

For a rat of £350, monthly take home will be £5994.73 .(If you work rights days of the month).
Umbrella might be less.(Probably "Would" be less).

I don’t think opening a limited company is difficult. (All you need is pay an accountant few quids and they get it all up and running for you ).

People say Limited is only helpful for long term contracts – But well I would say 4 months at least – You could save up to £ 3.5k using Limited as oppose to Umbrella for that 4 months at that day rate (Nice cash right? - )


Totally my own opinion – I am sure a lot will disagree with me (But I know what im saying).

There will only be a significant difference in earnings between Ltd and umbrella if the OP's working practices put them outside IR35. I would think it unlikely in mot circumstances that you would have a saving of £3.5k over 4 months even if the OP were outside IR35 as they would be likely to be a higher rate tax payer. Plus you haven't factored in set up and shut down costs on the Ltd Company. Realise it's just your opinion but it would be the OP who could be landed in the mire with HMR&C if they followed your advice and it was incorrect.

[rurffy]

There will only be a significant difference in earnings between Ltd and umbrella if the OP's working practices put them outside IR35. I would think it unlikely in mot circumstances that you would have a saving of £3.5k over 4 months even if the OP were outside IR35 as they would be likely to be a higher rate tax payer. Plus you haven't factored in set up and shut down costs on the Ltd Company. Realise it's just your opinion but it would be the OP who could be landed in the mire with HMR&C if they followed your advice and it was incorrect.

Ha! I just cant win , can i ?

[Sausage Surprise]

If you go umbrella, here's the figures from Contractor Umbrella for you:
28 days per month at £350 = £9800 income
Employers NI = 1098.54
Employees NI = 440.10
PAYE = 2707.34
Umbrella fee = 95.00

Total net income = £5463.65 a month

Who works 28 days in a month??

[TheFaQQer]

Who works 28 days in a month??

I wondered how long it would take someone to spot that

20 days @ £350 = £7000 gross
Employer NI = £759
Employee NI = £390.79
PAYE = £1610.06
Umbrella fee = £95

Net income = £4144.79

Since the OP has disappeared since their first reply, I'm really not that fussed