Reply to: Newbie Q - 3 month rolling contract - Umbrella or Ltd.

[Kenny@MyAccountantFriend]

Depending on reserves in the company it may be more tax efficient to keep the company 'trading' for a full 12 month period as you would then be eligible for entrepreneurs relief, which you would not be after 9 months.

[AJ1982]

Or just keep contracting, collect those bananas

[Eastendoflondon]

I've been quoted £200 plus VAT from CapricaOnline to close down the company which seems reasonable imo. I will prob just use that option at end of the 9 months. Cheers.

[AJ1982]

Hi All - After taking advice i think it's best to go the LTD company route(high daily rate).

I have one question you may be able to help with - if my contract ends in 9 months (December 2015)should i keep paying my accountant until end of financial year then dissolve the company? I gather this will be fairly straightforward in my case as my LTD co will be able to meet all it's obligations. Cheers.

Yes, in the case of SJD Accountancy, the fee is monthly paid, but is for the whole year of service. Which you will need. I am not sure they cover closing down, that cost extra.

[Eastendoflondon]

Hi All - After taking advice i think it's best to go the LTD company route(high daily rate).

I have one question you may be able to help with - if my contract ends in 9 months (December 2015)should i keep paying my accountant until end of financial year then dissolve the company? I gather this will be fairly straightforward in my case as my LTD co will be able to meet all it's obligations. Cheers.

[Andrew@Wisteria]

IR35 is going to be a problem if it is a true rolling contract as well. It may well be umbrella is the best option regardless of length.

Very important point. If you decide to go down the Umbrella route for the first 3 months, and then get extended (and you're considering going Ltd) you should get your contract reviewed and also be fully aware of your net pay compared to an Umbrella arrangement.

[LisaContractorUmbrella]

Go on, tell us Lisa.....is it Bedouin ???

No it's us - we're brilliant, awesome in fact

Sorry, been listening to positive affirmation tapes all morning, don't know what came over me

[TestMangler]

Funnily enough I would

Go on, tell us Lisa.....is it Bedouin ???

[LisaContractorUmbrella]

You wouldn't happen to know a good one would you?

Funnily enough I would

[northernladuk]

The contract may only end up being for 3 months so try an umbrella and then, if the contract's extended, look at opening a Ltd Co.

You wouldn't happen to know a good one would you?

[LisaContractorUmbrella]

The contract may only end up being for 3 months so try an umbrella and then, if the contract's extended, look at opening a Ltd Co.

[CloudWalker]

I'd start with a brolly company first just to get a feel for contracting.

[Eastendoflondon]

Ok cheers all - i'll ask the agency if they are happy with me going the umbrella route

[TheFaQQer]

If this is going to be your only contract, then whether you go via umbrella or limited company, the expenses that you can claim will be affected.

[northernladuk]

IR35 is going to be a problem if it is a true rolling contract as well. It may well be umbrella is the best option regardless of length.