Reply to: A little bit of advice needed please...

[Svalbaard]

Ok assuming i declare myself to be outside IR35, any accountants on here fancy giving a quote on how much I'd have to pay for 10 months of your magic?

Just for comparison can you let me know how Giant charge, is it a flat fee or is it a % of gross? Can't seem to find that info on their website.

[MPwannadecentincome]

assuming that you are comparing like for like in expenses, whih you should be as the legislation is the same in both Umbrella company, and your Own Limited Company.

Should be... but are not - I have a growing list of expenses I cannot claim in umbrella that I could as Ltd.

Of course I could claim these on my annual tax return - not sure yet whether it will get through but its an additional pain.

[PhilAtBFCA]

Limited Company

zooooom

Running your own business should not be just about the financials, you need to be prepared to take on the responsibility too, you cannot just delegate that to anyone else, although you can pay for reasonable and professional advice.

From the financial point of view its a mathamatical certainty that you will always be better off, regardleess of IR35 in a VAT registered Ltd Company assuming that you are comparing like for like in expenses, whih you should be as the legislation is the same in both Umbrella company, and your Own Limited Company.

There is a video explanation and a spreadsheet here which may help you make a decision.

Phil

[scooterscot]

Hello,

I am a contractor currently getting paid through giant as an umbrella company. This is my first contract and I work 37.5 hours a week for £15/hour. I worked out the other day I am taking home around about 60-65% of what I earn, which if i'm being honest seems absolutely tulip.

Given that there is 10 months left on my contract, is it worth me setting up a limited company? how much extra money am I likely to take home minus the additional costs? I have read internet guides and all the forum stickies but could do with an opinion based on how much I actually take home.

thanks!

Do you think you'll continue to contract beyond the end of this contract?

Giant are charging you 40-35% of your take home because it requires the least amount of input from you.

Yes you can increase this up to around 75-80%, but it will require effort, some more of your time, I'd talk to a local account if you are serious about taking home more money.

[zoooom]

Ok assuming i declare myself to be outside IR35, any accountants on here fancy giving a quote on how much I'd have to pay for 10 months of your magic?

[Beefy198]

As this is your first contract chanes are that you fall outside IR35.

What planet are you on?

[sweetandsour]

£15 per hour?

Maybe it is time for me to give up this IT lark.

To the OP, because you are using an umbrella company Employees and Employers National Insurance Contributions are being deducted from your earnings.

If you are caught by IR35 then you have to live with that.

If you are not caught by IR35 then you don't have to pay those if you use a Limited Company.

This being your first contract has no impact on whether you are IR35 caught or not. It depends on your contract, the contract between your pimp and the client, and the working arrangements.

[krytonsheep]

the 69% estimate was excluding an accountant (and expenses/insurance).

[tino]

honestly you can start a ltd company. As this is your first contract chanes are that you fall outside IR35.

If you think its a hassle try some other umbrella companies that charge you anything. Some have 3 month trial period. one has 5 years free offer search for Ganumbra in google. you will save plently on fees. some relief.

If you start your own company , these accountants will suck most of your moeny. and legalities will suck you time

As this is your first contract chanes are that you fall outside IR35. Bull, it has absolutely no bearing on whether he is in or out of IR35

[NotAllThere]

I think I'm inside... I remember reading up on it a while back and isn't there something saying if you are working in the same location for over a certain amount of time you fall within it?

No. Go do some research. Start with the little box on the left entitled "CUK Navigation".

Company Formation
First Timers
Legal : IR35
Legal : S660 / MSC
Contractor Guides

[zoooom]

Thanks for your speedy replies!

What are your expenses?

Are your contract and working conditions inside or outside IR35?

I think I'm inside... I remember reading up on it a while back and isn't there something saying if you are working in the same location for over a certain amount of time you fall within it? also the only expenses I'm claiming at the moment are travel expenses.

If you worked 52 weeks a year on your wage (and are inside IR35) the take home pay should be about 69% as a Ltd.

So you could make some extra cash, but it might not be worth the hassle.

Yeah considering I would have to pay an accountant wouldn't I? or is that factored in to your estimation?

Thanks for your help, I really am a bit of a noob about all this!

[hiteshg]

How much do they charge ?

honestly you can start a ltd company. As this is your first contract chanes are that you fall outside IR35.

If you think its a hassle try some other umbrella companies that charge you anything. Some have 3 month trial period. one has 5 years free offer search for Ganumbra in google. you will save plently on fees. some relief.

If you start your own company , these accountants will suck most of your moeny. and legalities will suck you time

[krytonsheep]

If you worked 52 weeks a year on your wage (and are inside IR35) the take home pay should be about 69% as a Ltd.

So you could make some extra cash, but it might not be worth the hassle.

[Beefy198]

I worked out the other day I am taking home around about 60-65% of what I earn, which if i'm being honest seems absolutely tulip.

Fairly standard for a PAYE employee

[DiscoStu]

What are your expenses?

Are your contract and working conditions inside or outside IR35?