Which way to go? Please Help!!!

[smanaton]

thanks guys for the help, the job i've just finished was a favour and the new contract has come from a mate of mine, i had no real intention of contracting i actually wanted some time off!! but such is life, nothing goes as planned!

[VectraMan]

Sounds like you're looking into this 3 months too late. Short answer is to start a Ltd. company, it's by far the best way, and you're correct that if you go PAYE you may not be able to get expenses. Being a sole trader isn't really an option as agencies and switched on direct clients won't deal with sole traders.

I don't know where you stand with the invoices you've already raised. If you start a Ltd., then you won't be able to use that as the invoices won't have been in the Ltd. company's name. Presumably there's a way for a sole trader to become a Ltd. company, which may be the best solution.

[hattra]

Once you get the first three months sorted out with Hector (i.e. pay them a lot of money to leave you alone), you could always go with an umbrella company, to keep things simple. You won't keep quite as much money in your pocket as you will running your own Ltd company, but in my opinion you can save a lot of book-keeping hassle. I use Giant, and about the only thing they don't allow you to claim on expenses is capital expenditure items, and stuff that could arguably be used for private use as well, like broadband into your house. Its a good half-way house between employment and running your own company, and they do all the IR35 compliance stuff for you

[smanaton]

QUESTION CHANGE

if you got offered a contract, you have agreed a rate of £350 a day, they have offered to take the on the books for a period of 3 months for that rate would you take that option or go another way?

[smanaton]

If you have been invoicing (assuming you are self employed as you havent a ltd company, and by saying you are invoicing I am thinking there is no umbrella in use) for the last THREE months - you are heading into trouble with Hector. Registration for self employed NI contributions must be within 3 months. You need to tell IR themselves & the NI. You MAY get away without a fine from the NI part of the organisation, but depends to a degree on how much you grovel, and how nice the person on the other end is.

I am under the 3 months, i spoke to the tax office when i first started out and they said as long as i register for tax within 3 months i'd be ok, as it happens i am going to the tax office tomorrow so will sort it out then.

Thanks for the advise though

[smanaton]

would the rate be the same for Contract or Temp Permie (on payrol)?

yes, my rate is £350 a day

[dmini]

If you have been invoicing (assuming you are self employed as you havent a ltd company, and by saying you are invoicing I am thinking there is no umbrella in use) for the last THREE months - you are heading into trouble with Hector. Registration for self employed NI contributions must be within 3 months. You need to tell IR themselves & the NI. You MAY get away without a fine from the NI part of the organisation, but depends to a degree on how much you grovel, and how nice the person on the other end is.

[MrsGoof]

would the rate be the same for Contract or Temp Permie (on payrol)?

[smanaton]

£91K for 3 months? Are they looking for anyone else?

You couldn't have looked very hard round the forums if you couldn't find the answer you were looking for. You won't pay too much tax if you go PAYE. You'll have to pay just the right amount of tax, like any other employee. You are an employee right?

Thanks for the reply

wish it was 91k for 3 months!

its 91k per anum pro rata so will be £22.75k for the 3 months, i've been contracting for the last 3 months and all i've been doing is invoicing the customer, obviously i'll have to either register for tax or start a company, with this new contract though i'm worried that i wont be able to claim my expenses, i will have to find a place to stay near work (london) and as i live in cornwall i will be doing a lot of travelling at the weekends.

As its only temp work i'm not sure if being an employee for 3 months would be better than contracting and billing them for my time (if you get what i mean)

[VectraMan]

£91K for 3 months? Are they looking for anyone else?

You couldn't have looked very hard round the forums if you couldn't find the answer you were looking for. You won't pay too much tax if you go PAYE. You'll have to pay just the right amount of tax, like any other employee. You are an employee right?

[smanaton]

Hi to all,

I was wondering if someone could help me out, i have just been offered a 3 month contract and am wondering the best way to go, they have offered me PAYE at 91k for 3 months, not sure if i should accept that or setup a company, or something else, i've had a look around the forums but couldnt find the answer i was looking for.

The real question is, will i pay too much tax and NI if i go PAYE or will the benefits outway the cost?

Thanks in advance!