Stay as a PAYE Employee, or start Contracting?

[reece240692]

Hi guys,

I've recently been offered an opportunity at work where I'm a permanent PAYE employee, to go off the books and be employed there on a Freelance/contractor basis.

A lot of thought has gone into this and I was hoping for some advice on something in particular; Should I register as self-employed, or go through a LTD company?

The reason I ask this is because the company I'm working with intends for me to stay there indefinitely as long as they have projects for me to do, I'm new to contracting but I have been self-employed before and would like to keep the paperwork down, is there any particular reason why contractors are either LTD or go through an umbrella company?


Thanks in advance for all your help guys.

Reece

[tractor]

...

Hi guys,

I've recently been offered an opportunity at work where I'm a permanent PAYE employee, to go off the books and be employed there on a Freelance/contractor basis.

A lot of thought has gone into this and I was hoping for some advice on something in particular; Should I register as self-employed, or go through a LTD company?

The reason I ask this is because the company I'm working with intends for me to stay there indefinitely as long as they have projects for me to do, I'm new to contracting but I have been self-employed before and would like to keep the paperwork down, is there any particular reason why contractors are either LTD or go through an umbrella company?

Thanks in advance for all your help guys.

Reece

You do realise this is the General forum. First bit of advice is to close this an open another in a more professioal forum before the cave dwellers wake up.

You might also want to put a lot more thought into it before you do, search for 'Friday to Monday' and IR35 and 'sham arrangement'.

[scooterscot]

Contracting is a way of living, not working. PAYE is a way of working, and no way to live.

[eek]

Hi guys,

I've recently been offered an opportunity at work where I'm a permanent PAYE employee, to go off the books and be employed there on a Freelance/contractor basis.

A lot of thought has gone into this and I was hoping for some advice on something in particular; Should I register as self-employed, or go through a LTD company?

The reason I ask this is because the company I'm working with intends for me to stay there indefinitely as long as they have projects for me to do, I'm new to contracting but I have been self-employed before and would like to keep the paperwork down, is there any particular reason why contractors are either LTD or go through an umbrella company?


Thanks in advance for all your help guys.

Reece

Offered the opportunity means that they see a reason to do it. To be blunt find out what is in it for them as there is 0 benefit in it for you unless they are willing to pay you significantly more (think how much Employers NI, Pension contributions, sick pay costs them) you will just lose out..

Personally, I would politely reject their offer and if you really want to go contracting find another company and hand in your notice...

[reece240692]

They've actually suggested exactly that, they know what my net figure is after tax and employers ni, so they want to come up with a figure that's good for me and good for them, I'm not entirely sure about the rules with this kind of thing but I'm confident I could negotiate a good rate

[malvolio]

Just curious as to why you think giving up employment protections, redundancy rights, pension rights, paid holidays, paid bank holidays, sick pay cover, training and career progression just so your employer can save themselves a chunk of money and not have to worry about a list of legal requirements is a good idea...

You want to go contracting, go contracting. Staying with the same company other than as an employee is not contracting, it's stupid.

[RetSet]

Nobody mentioned IR35 Friday to Monday scenario yet?

[stek]

They've actually suggested exactly that, they know what my net figure is after tax and employers ni, so they want to come up with a figure that's good for me and good for them, I'm not entirely sure about the rules with this kind of thing but I'm confident I could negotiate a good rate

You would need about three times your current perm rate to make it worthwhile.

[reece240692]

Whatever they give me will be more than my perm rate, they've assured me at least that much, I'm a little naive so forgive my ignorance but I'm attracted by the fact that I'd be allowed flexible working and weekly rather than monthly pay, also there are tax benefits to being a contractor AFAIK over being an employee

[stek]

Whatever they give me will be more than my perm rate, they've assured me at least that much, I'm a little naive so forgive my ignorance but I'm attracted by the fact that I'd be allowed flexible working and weekly rather than monthly pay, also there are tax benefits to being a contractor AFAIK over being an employee

No tax benefits in this scenario I'm afraid.