Should I go Ltd for a short contract?

[jmo21]

I'm about to finish up a project with a client that I'm currently operating under an umbrella with. I'm operating outside of IR35 and on a rate of £250 p/d.

IR35 does not apply when working through a brolly.

Regardless, stay brolly.

[ogcals]

Thank you all for such quick replies - that's my problem solved!

Have a great weekend

[Maslins]

For 6 weeks? Stay brolly

This.

Remember that if your company trades for just 6 weeks, even if you don't bother registering the company for VAT/as an employer, it will still need to do a full set of accounts and corporation tax return. If you're thinking you can pay 1-2 months worth of pay monthly accounting fees and they'll do all this for you (as well as help with incorporation/strike off afterwards) you'll likely be bitterly disappointed.

Even 6 months we'd recommend sticking with umbrella. 12 months, a Ltd Co is definitely worth considering.

[ladymuck]

No, not worth all the admin for 6 weeks.

[MonkeysUncle]

For 6 weeks? Stay brolly

[ogcals]

Hi All,

Firstly - long time lurker and appreciate all the advice provided on here by you lovely people. Always a good laugh reading some of the replies too.

I wouldn't consider myself a full time contractor and tend to pick up occasional contracts when convenient or involve a project that interests me. When "on the bench" I just knuckle down and study as I hope to move away from the general IT engineer/SysAdmin field in the near future (working on a self taught programming track that I hope to pursue into a permie role in the next 4 or 5 months from now)

I'm about to finish up a project with a client that I'm currently operating under an umbrella with. I'm operating outside of IR35 and on a rate of £250 p/d. Despite this ending soon they are keen to book me in for another 6 week stint in the new year to work on a completely separate project - again outside of IR35. This will be my last contract with them and will potentially be my last contract for quite some time.

My question is should I go Ltd even if for such a short contract? Will the costs of registering a company and hiring an accountant for 2 months be worthwhile? My current Umbrella is Parasol and they suggest that swapping from Umbrella to their Ltd accountancy I could see close to £200 more per week. Is this at all possible? I would assume I have the full Dividend allowance available to me, which would then reset again in April so I could potentially take that 6 weeks pay home tax free if I take some before April and some after? or must I first pay a salary as a director?

Hopefully this is clear enough, any questions I'll be happy to answer.

Thanks