Limited or sole trader ?

[acerimmer]

If you were setting up as an IT contractor right now, how would you go about it, with regard to company type and VAT registration etc.. ?

[Xenophon]

Wait for it...

[El_Diablo]

Wait for it...

On your marks...

[DimPrawn]

Sounds like all the permies are bailing to become contractors due to redundancy, whilst all the contractors are looking at permie to weather the storm...

SNAFU

[Xenophon]

SNAFU

WHS

[Pondlife]

Steady boys... steady... wait til you can see the whites of their eyes.

[bogeyman]

You could try posting this in the Business section to get more informed responses.

If you're going through an agency, you need to be a Ltd. co (because of the Companies Act). Otherwise your 'employer' (I use the word advisedly) will be liable for your NICs and PAYE. You could be a temporary employee of an agency for this purpose.

If you work directly to the client, then you can be a sole trader, or in a partnership, but beware of being caught by IR35. Your client could still end up being liable for NI/PAYE if you cannot prove to HMRC's satisfaction that you are 'in business on your own account'. See innumerable IR35 articles passim.

Operating costs to a sole trader are generally lower than a ltd, but you don't have the tax-advantageous option of paying yourself dividends in lieu of drawings/salary.

If you're going to make any decent sort of living, you will probably exceed the VAT threshold anyway, so registration would be quite likely. VAT is pretty simple to deal with yourself if you have half a brain - you shouldn't need an accountant to do your VAT returns.

Anyone with more up-to-date/knowledgeable with the situation, please correct me if I'm talking balls.

[VectraMan]

I'd use an autonomous collective, or possibly an anarcho-syndicalist commune.

[Xenophon]

acerimmer, how did you come up with your name?

[bogeyman]

Clearly I have made a faux-pas by replying to Mr Acerimmer in a sensible and constructive fashion