Suggestion on short term contract what to do...???

[Nixon Williams]

Not heard of that, have you got a link? Not disbelieving you, just a new one for me.

If you get a copy of the Inland Revenue booklet 490 (download it from www.hmrc.gov.uk), see paragraph 3.19.

This basically states that if the site is the only place that you work at whilst operating through a limited company or an umbrella, the travel claims will not be allowed, as the travel is not for a limited duration, it was for all the duration!

I hope this clears this up!

Alan

[Epiphone]

HMCR can disallow all expenses if you have one gig per umbrella?

Not heard of that, have you got a link? Not disbelieving you, just a new one for me.

[Epiphone]

Umberellas are convenient, but if you only do the one assignment with them, you could get caught for tax

Eh?

[LisaContractorUmbrella]

Its a nightmare decision!!! Im in 2 minds whether to go down two routes!!

Ltd

Reason being tax, but Im not sure whether i will decide to take on another contract at the end of this one

Umberella

If this is the only contract I do I shall be stung by the taxman.

Any other suggestions people??

Circumstances.

6 month contract, not going to be looking for a contract at the end of this one.

If this is likely to be your only contract and it will fall inside of IR35 you would be better off using an umbrella company (not biased honestly!). If you are inside IR35 you will be paid via PAYE which means that your tax liabilities will be accounted for as you go along rather than at the end of the financial year. Again, if you are inside IR35 your tax liabilities will be more or less the same whether you go the Ltd route or the umbrella route - the only difference is a 5% allowance that you receive through a Ltd. You should bear in mind that, if you are inside IR35 you will be liable for both employees and employer's national insurance but, again, you will have this cost whether you go Ltd or Umbrella. Your first step should probably be to have your contract assesed so that your IR35 status can be determined.

[bsnapool]

Any suggestions???

[bsnapool]

Its a nightmare decision!!! Im in 2 minds whether to go down two routes!!

Ltd

Reason being tax, but Im not sure whether i will decide to take on another contract at the end of this one

Umberella

If this is the only contract I do I shall be stung by the taxman.

Any other suggestions people??

Circumstances.

6 month contract, not going to be looking for a contract at the end of this one.

[hattra]

Hi there

I have read lots of posts about umberella, composites and ltd's.... But nothing really has cropped up about short term contracts (6 months)... This is my first contract, will be there minimum 6 months, what would people suggest i do???

I am thinking a ltd as I will fall short of the £40,000 tax increase??

I know this will sound repetive to all regulars but any assitance would be really helpful...

Thanks in advance..

Andrew

Umberellas are convenient, but if you only do the one assignment with them, you could get caught for tax

[Sockpuppet]

Bit late for that, as I have just accepted one.

Let me put that sentence another way...

What other issues need to be addressed on a monthly basis???

getting paid, running payroll, filing reciepts for expenses talking to the bank / accountant. Looking for your next contract.

[bsnapool]

Bit late for that, as I have just accepted one.

Let me put that sentence another way...

What other issues need to be addressed on a monthly basis???

[MarillionFan]

"what other hassles is there after the initial set up?"

Hassles? Stick with perm work m8, doesnt sound like you're cut out for contracting.

[bsnapool]

Thanks for your reply.. A difference of opinion is always good...

I want to go with a limited company, I have the forms to sign here but what other hassles is there after the initial set up?

[VectraMan]

Six months isn't short term; six months is the typical length of contracts.

Ltd. is always best. If you're dipping into contracting and don't expect to continue, then an umbrella will be less hassle, but will cost you more.

[bsnapool]

Hi there

I have read lots of posts about umberella, composites and ltd's.... But nothing really has cropped up about short term contracts (6 months)... This is my first contract, will be there minimum 6 months, what would people suggest i do???

I am thinking a ltd as I will fall short of the £40,000 tax increase??

I know this will sound repetive to all regulars but any assitance would be really helpful...

Thanks in advance..

Andrew