New to contracting, what would you do ?

[drob1984]

Welcome to the world of contracting. In a way you are fortunate in that you haven't been used to the "golden years" of contracting and are starting a'fresh.

In your shoes, I'd find a good umbrella org that suits your requirements. For me, its all about paying into my own SIPP (pension control is important to me). So for me there are 2 that meet that requirement, Paystream and Nasa.

I wouldn't even think about a limited company as I reckon for at least the next 2 years, Outside IR35 contracts via a PSC will represent less than 1% of the contract market. I think no-PSCs will be the norm. Lots of contractors have worked via umbrella's for years and its been a perfectly legitimate way to operate if you're less bothered about expenses, overheads of running a business and just want to get paid.

This is my plan. I am leaving my current engagement/client, taking some time out and I may go back to them "in time" as umbrella under a new SoW, job title and engagement. In the mean time.... painting/training/exams/holiday.

[DSF70]

Yes, but the OP said he had an offer.

Heard that a Financial Services company in Swindon, we’re preparing to offer 1 year extensions (inside IR35) for some of their contractors on a big migration programme, and served them notice a couple of days later.

Just waiting for my official notice that I’m going too as cutbacks on several programmes taking place. Expect to hear tomorrow.

I’ve had a good run, got enough to keep me off the streets for a few years!!!

[BolshieBastard]

Hi all.

This is my first post and I can see there is generally a lot of information around IR35 on the forums and I have had a good look through. It has been very helpful.

My situation is that I am PAYE at present. As part of the strategy I am working to, becoming a contractor early 2020 is the plan, but of course the IR35 changes have got me thinking.

I do not have a limited company (but could set one up) as of yet and I have been made my first contract offer for 6 months, Inside the IR35 and the recruiter is promoting using umbrella.

Should I be going down that route as I am first timer or should I still be setting up an Ltd company as I would have in 2018 2019 per say?

I would love to hear the thoughts of those who are more experienced in this field that I am.

Thanks in advance, Alan

If you've been offered your first contract and it's inside, there's little point forming a limited at this point as you'll just be incurring accountants fees with nothing going into the company.

Using an umbrella is often the best way for new contractors because if they dont like the lifestyle, there's no real costs to going back permie. In any event, I wouldnt be as confident as others who think lots or outside IR35 roles are going to appear by the truckload in 12 - 24 months time.

I would strongly advise you do due dilligence on the umbrella you use and make sure it isnt offering 85% or more of your contract is paid to you. You may be getting caught up in avoidance schemes and they are a whole heap of stuff you need to avoid.

[northernladuk]

Yes, but the OP said he had an offer.

So he's got nothing yet

[fidot]

Best approach is to find a contract 1st then decide based on circumstances


Sent from my iPhone using Contractor UK Forum

Yes, but the OP said he had an offer.

[GhostofTarbera]

As per the rest of the replies, umbrella seems the best approach if you are determined to give contracting a try.

However, I wouldn't necessarily go with the umbrella recommended by the agency. I recommend doing your own research.

Eg if pension contributions are important to you, find an umbrella that supports salary sacrifice.

Best approach is to find a contract 1st then decide based on circumstances


Sent from my iPhone using Contractor UK Forum

[fidot]

As per the rest of the replies, umbrella seems the best approach if you are determined to give contracting a try.

However, I wouldn't necessarily go with the umbrella recommended by the agency. I recommend doing your own research.

Eg if pension contributions are important to you, find an umbrella that supports salary sacrifice.

[WordIsBond]

In addition to what I already know, I will make sure I know everything else discussed here and much more.

Sounds like a formula to turn one insane.

In brief, there's no absolutely no reason to form a Ltd if you are going to be inside. There might be reasons for someone who already has a Ltd to keep it, at least for a while, if they are going to be inside IR35, but no reason for someone just starting out to form one.

Go brolly, get into contracting, if the world starts to change and more outside contracts start to come up, you might want your own company then. For now, get into the contracting lifestyle and see if you actually like it and want to keep doing it, without all the hassles of a Ltd Co that would be of no real benefit, and actually cost you something. Just go brolly.

[AlanPs1]

It's not really.

You need to know everything else discussed and much much more.

For your benefit, I will change my reply to "Thanks, this is what I needed to 'get my head round' !"

In addition to what I already know, I will make sure I know everything else discussed here and much more. I just wanted to get my head round that aspect of things really as I couldn't quite get a direct answer from those I had been speaking to but they're all old hats.

Thanks

[northernladuk]

Thanks, this is what I needed to know really!

It's not really.

You need to know everything else discussed and much much more.