Adhoc contract

[SKG]

I am working as contractor for longtime and went inside ir35 couple of years back. I am using umbrella now for couple of years. I closed my Ltd company last year.
I have got another adhoc contract to work for few hours (not certain depending upon the issues they have). I am debating if I open a new company again to bill this adhoc contract. I will have to invest in buying new MacBook and iPhone to support this and little more expenses. So opening a company might be useful rather than using my current umbrella for this additional contract. Would be able to also have little more expenses like Christmas party.
Anybody else in similar situation? I dont have an accountant anymore and not sure if is worth having the hassle of opening a new company because of this adhoc work? Any ideas please. Thanks skg

[jamesbrown]

I definitely wouldn't open a company for a trivial amount of work and a few grand in expenses, not worth the hassle. You could treat it as self-employed income, depending on the circumstances, else push it through your umbrella.

[northernladuk]

I am working as contractor for longtime and went inside ir35 couple of years back. I am using umbrella now for couple of years. I closed my Ltd company last year.
I have got another adhoc contract to work for few hours (not certain depending upon the issues they have). I am debating if I open a new company again to bill this adhoc contract. I will have to invest in buying new MacBook and iPhone to support this and little more expenses. So opening a company might be useful rather than using my current umbrella for this additional contract. Would be able to also have little more expenses like Christmas party.
Anybody else in similar situation? I dont have an accountant anymore and not sure if is worth having the hassle of opening a new company because of this adhoc work? Any ideas please. Thanks skg

You are thinking all wrong. You don't get expenses, you get the ability to claim tax relief on them. All comes out of your pocket at the end of the day, it's just around 20% cheaper that's all.

[hugebrain]

it's just around 20% cheaper that's all.

around 50% cheaper?

[northernladuk]

around 50% cheaper?

Dunno, whatever the numbers are, it's still out of his pocket, just at a discount.

[ladymuck]

I wouldn't bother either. You could register as self-employed which would then mean you can offset some expenses against your income via SATR.

However, I suspect the client doesn't want to deal with a self-employed person and is asking for a LtdCo?

[SKG]

You are right, client doesn't want to deal with SATR but with an umbrella or ltd company. What's the best way forward please?
Thanks

[ladymuck]

I'd say go with a brolly. Depending on how ad hoc the work is some umbrellas might not cope with it very well so you'll need to ring around a few (start with Clarity).

I don't think it's worth standing up a LtdCo for it, personally, based on the amount of information you've shared.

[northernladuk]

How did you close your company? Are you caught by the 2 year rule so can't open one anyway?

[jamesbrown]

You are right, client doesn't want to deal with SATR but with an umbrella or ltd company. What's the best way forward please?
Thanks

Umbrella.

Unless you have at least a few tens of thousands invoiced a year, it's unlikely to be worth the hassle of opening/running a company for ad-hoc work.