limited company or umbrella

[Forbes Young]

Hi, just joined the forum. I'm going to start a short contract in Jan 2015. Maybe carry on contracting after if opportunity allows. How quickly am I able to set up a limited company(100% selfemployed no other shareholders). Or would it be easier go under an umbrella? looking for a reasonable fixed fee with the basic cover, such as insurance and etc..
thanks for reading this post

A ltd company can be set up same day - it takes a around a week for the company bank account to be opened and a week or two to obtain a VAT number and set up a PAYE scheme. Your accountant should be able to sort this out for you. Also I would advise you set up business insurances before you start trading through your company.

The whole idea though is not just to set up a ltd company for a few months to undertake a short term contract; you should be making a decision to go into business as an independent consultant and be prepared to put in effort to win a succession of contracts. Then to operate through your own ltd company outside of the IR35 legislation will be the bet way to maximise your take home remuneration.

For a one-off contract for a few months best to go Umbrella -as its easiest in these circumstances and you only pay normally on a monthly basis for as long as you use them. The take-home remuneration is however usually significantly less than operating through your own ltd company outside of IR35.

[DannyF1966]

I contracted for just over a year under an umbrella and then decided to set up a limited company when I changed contracts as the new agency didn't work with the old umbrella. So I thought "stuff it, I'm not changing umbrella companies every few months, plus I didn't have any downtime as I got the new contract straight away" and went limited.

Setting up the company was a breeze, my accountant did everything promptly, the only hiccup was setting up the business bank account. The first bank I tried turned me down, the second accepted me but it was still 11 weeks from starting the contract to being able to pay myself something (that includes getting internet banking set up which took another fortnight on top of opening the account).

If it's short-term I recommend going umbrella to start with, at least while you find your feet, and then think about going limited once you know contracting's right for you.

[tractor]

...

And don't expect, if you're contracting for 3 months, just to pay an accountant 3 months' fees. Factor in at least 6 months'. Possibly more. An accountant's monthly fee is generally an annual fee divided by 12 but there may be some waggle room with some.

Waggle is done in General around here, wiggle is what you do with accountants fees. HTH.

[Alan @ BroomeAffinity]

And don't expect, if you're contracting for 3 months, just to pay an accountant 3 months' fees. Factor in at least 6 months'. Possibly more. An accountant's monthly fee is generally an annual fee divided by 12 but there may be some waggle room with some.

[NickFitz]

Have a look at http://forums.contractoruk.com/umbre...composite.html - it may be an old thread, but things haven't really changed. And if you go Limited, it's best to get an accountant who specialises in contractors to relieve you of the burden of things like payroll, tax, etc. SJD, InTouch, Nixon Williams, and others are all popular. Try Directory of Contractor Accountants - accountancy services providers for IT contractors :: Contractor UK

And Check out the various guides over there --> on the right under "CUK Navigation", from First Timers onwards. They'll answer most or all of your questions without distracting you with stuff about gladiators or bleeding the radiators, as zeitghost mentioned above

[cojak]

Your accountant will be able to do this for you.

[newcontractor2014]

payroll

Dear all, thanks for the reply. please provide a link with step-by-step instructions for setting up payroll as well as a new limited company? yes will be self employed in the new year with a short contract of 3 months to start with. Not sure how much time I will have for the paperwork though. 5% saving comparing to umbrella will be a significant amount if contracting for over 6 months or more?

Well, Specifically In General, exactly how long is this "short" contract?

And as above, read the stickies ->

And if you don't want anyone to ask you about bleeding the radiators or gladiator films, try posting in the professional forums.

But do some research or they'll eat you alive.



Now where did I put those fava beans?

I'm sure there's a bottle of chianti around here somewhere.

[PurpleGorilla]

Read the stickies.

[stek]

Self employed?

[newcontractor2014]

still no reply? good morning?

Hi, just joined the forum. I'm going to start a short contract in Jan 2015. Maybe carry on contracting after if opportunity allows. How quickly am I able to set up a limited company(100% selfemployed no other shareholders). Or would it be easier go under an umbrella? looking for a reasonable fixed fee with the basic cover, such as insurance and etc..
thanks for reading this post

[newcontractor2014]

Hi, just joined the forum. I'm going to start a short contract in Jan 2015. Maybe carry on contracting after if opportunity allows. How quickly am I able to set up a limited company(100% selfemployed no other shareholders). Or would it be easier go under an umbrella? looking for a reasonable fixed fee with the basic cover, such as insurance and etc..
thanks for reading this post