Limited company vs Umbrella?

[FiveStars]

Hello everyone

Looking for a bit of advice please.

I am permanently employed and going to do contracting soon. I was asked the question if I would want it to be umbrella or limited company. I understood Ltd company may be more beneficial in terms of lesser tax/flat rate etc so I agreed limited company route. Now the contract is initially for a year and there is potential to be extended depending on the workload.

I have registered a limited company and have spoken to an accountant who is more than happy to do all the paperwork etc and submit my accounts at the end of the year. Now I have read something about in or out of IR35? How would I know if it is applicable to me? Would my accountant be able to advise me?

I'd just like to point out that I am the director of the company and I'll be working or providing services to my clients.

Thanks

[mudskipper]

NorthernladUK Comment generator


They're over there ------->

[northernladuk]

Hello everyone

Looking for a bit of advice please.

I am permanently employed and going to do contracting soon. I was asked the question if I would want it to be umbrella or limited company. I understood Ltd company may be more beneficial in terms of lesser tax/flat rate etc so I agreed limited company route. Now the contract is initially for a year and there is potential to be extended depending on the workload.

Look in the Umbrella section of the thread and you will find a detailed post about the differences, benefits and downsides.

I have registered a limited company and have spoken to an accountant who is more than happy to do all the paperwork etc and submit my accounts at the end of the year. Now I have read something about in or out of IR35? How would I know if it is applicable to me? Would my accountant be able to advise me?

Bearing in mind he takes your money off you to give you financial advise have you thought about speaking to him?

I'd just like to point out that I am the director of the company and I'll be working or providing services to my clients.

Remind me not to buy shares in your company!

Seriously, being a directory comes with legal responsibilities to run your company and it's accounts properly. LEGAL responsibilities. Not just a bit of fun or have someone do it for you. You really need to do a lot more research and put more effort in to your company than this if you are going to succeed. You have no HR to keep cuddled up and warm. You are on your own two feet with the only people that can help you are the ones that you are paying. I think it is about time you stepped up a little IMO. I will give you a starter for 10 though as I am the helpful type. Admin does not put the links at the right hand side of this page just for the good of his health.

[northernladuk]

Oh yeah and this...

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

If you don't understand any of them.. research it as there is some good advice on there.

[LisaContractorUmbrella]

Umbrella company. Definitely


But, seeing as you have set up a Ltd Co - there is loads of stuff on here (as pointed out by NLUK) about IR35 - just remember it is your working practices that determine your status, not only what it says in your contract.

[kevpuk]

<snip>...as I am the helpful type...<snip>

Agreed