Reply to: just starting out...

[Cloud9Umbrella]

You all let this spammer off light, didn't you?

If you don't ask, you don't get...

I was actually doing a wee bit of reasearch on this site and came across the post so thought I would offer my services.

I will keep my "spam" to a minimum

[jmo21]

You all let this spammer off light, didn't you?

I don't mind when it is in the form they posted, at least it was up front in what it was.

The spam I don't like is the "Hey, I've heard B. Shawaddiwadi Accountants are the cheapest accountants out there, and have better customer service than <well known accountant>"

[RichardCranium]

Hi,

We at K&B Accountancy provide both Ltd Company and Umbrella Services at a competitive price whilst not comprimising on the quality of service. Feel free to give us a call on <telno> if you want to enquire further.

Nicola Spamfritter

You all let this spammer off light, didn't you?

[ASB]

I didn't know there was a limited on the amount of expenses you could claim?

There isn't. He's alluding to the 5% allowance. Your legitimate expenses are entirely claimable and the point he was making relates to being IR35 caught anyway. Of course what YOU think are legitimate expenses and what the taxman might think could well be different things.

[ratewhore]

Umbrella, see if you like contracting. if you do, setup ltd after your renewal after that initial 3 months!

Good advice. That's exactly what I did when I started. I was with Parasol for 3 months and, at the time, they were really good. I think I read on these boards that they are a bit rubbish these days.

Worst thing about brollies is seeing the difference between your gross at the top of your pay sheet and the net at the bottom.

But it's a good place to start...

[kingcook]

If you are LtdCo, but caught by IR35, you are PAYE (but can put up to £5,000 of expenses through).

I didn't know there was a limited on the amount of expenses you could claim?

[MarillionFan]

I agree with whatisname above.

Ltd. Quick and easy. Pay an accountant a fixed rate.

Give SJDAccountancy a line.

MF

[RichardCranium]

It's tempting to ditch the LtdCo.

I've been brollified for several years now

Thank you for having the balls to post that. Given the vigorous anti-umbrella stance I typically see, I was starting to wonder if my reason was at fault.

I had a chap working for me some years back who went through a brolly because he couldn't bear the thought of the responsibility of having a LtdCo. He got a lot of flak from the others on the team, but just shrugged his shoulders and ignored them.

I have wondered for some time how many on here are working through a brolly but were afraid to say so.

[NickFitz]

At a glance, brollies charge about £20 per week = £1,000 per year. That's £400 less than my accountant.

If you're under a brolly, you are PAYE (but can always put expenses through as well).

If you are LtdCo, but caught by IR35, you are PAYE (but can put up to £5,000 of expenses through).

If, like me, you spend a lot on expenses, and you know you're inside IR35 then wouldn't you be better off under a brolly:
- cheaper than most accountants;
- hardly any paperwork to do (just timesheets and expenses);
- nothing much to worry about (no HMRC, VAT and so on);
- might be able to bung more expenses through.

The absence of paperwork (which gets right on my tits this past few years) is worth a few quid to me.

It's tempting to ditch the LtdCo.

I've been brollified for several years now, on the basis that I figured that I would almost certainly be caught by IR35 (clients tend to hire me myself and I, so RoS is a no-no for a start) and I really couldn't be bothered with the hassle of running a Ltd any more.

The brolly I've been using was (it transpires now I've looked it up) charging £30/week (well, £120pcm and no charge when no invoicing takes place), but their service has (IMHO) been getting poorer throughout the last year so I think I'll switch for the next gig. I still doubt it would be worth my while bothering with a Ltd though. It may be all well and good for those who get taken on for clearly defined roles on clearly defined projects with clearly defined schedules in IBs or HMG departments, but out in TRW things are often a lot less clear - which is probably why a lot more gets done, even if it's not so well organised

[RichardCranium]

At a glance, brollies charge about £20 per week = £1,000 per year. That's £400 less than my accountant.

If you're under a brolly, you are PAYE (but can always put expenses through as well).

If you are LtdCo, but caught by IR35, you are PAYE (but can put up to £5,000 of expenses through).

If, like me, you spend a lot on expenses, and you know you're inside IR35 then wouldn't you be better off under a brolly:
- cheaper than most accountants;
- hardly any paperwork to do (just timesheets and expenses);
- nothing much to worry about (no HMRC, VAT and so on);
- might be able to bung more expenses through.

The absence of paperwork (which gets right on my tits this past few years) is worth a few quid to me.

It's tempting to ditch the LtdCo.

[BlasterBates]

What is your take home pay for £100,000 from a Brolly.

Is there IR35 issues?

[rootsnall]

Nobody else has said it

Go straight for the Ltd, much more tax/NI efficient and will prove cost effective even on a 3 month contract. If you look up the usual suspects on here they do all the work for you in setting up the Ltd, etc etc

[LisaContractorUmbrella]

I'm sure you've seen my other posts here when some people have lambasted Umbrellas as a terrible option.
Unlike many other posters I feel they have a place and provide a useful service for more than just dipping a toe into contracting.
While I have a Myco Ltd there are scenarios and cicumstances that make an Umbrella solution (if wisely chosen) ideal for any term.

For a new contactor starting out it's a sensible and rational option and I've recommended it to several new contractors over the years.

I have seen your other posts - it's nice to see someone sticking up for us

Seriously, even I would recommend a career contractor to have their own limited company but for first timers a good brolly is a safe and hassle free option

[BolshieBastard]

Brollies, deffo satan's spawn! Brollies should only be used for when out in the rain and even then, you should be man enough to deal with a bit of rain!

[Sally BFCA]

I'm sure you've seen my other posts here when some people have lambasted Umbrellas as a terrible option.
Unlike many other posters I feel they have a place and provide a useful service for more than just dipping a toe into contracting.
While I have a Myco Ltd there are scenarios and cicumstances that make an Umbrella solution (if wisely chosen) ideal for any term.

For a new contactor starting out it's a sensible and rational option and I've recommended it to several new contractors over the years.

I totally agree, if you are unsure, start with an Umbrella and re-visit your options down the line.