Reply to: Moved from Umbrella to Ltd

[LisaContractorUmbrella]

Start my new contract tomorrow for 3 - 6 months, But have to pay £5 pd in parking + £10 Fuel + Food
Just hope I can put it through my Ltd company now I'm set up.

Has your accountant not provided you with a 'are you new to this' type guide? If so I would read cover to cover and if not I would ask why and then look at another accountant possibly. Have you thought about your IR35 status as well?

[Andrew@Wisteria]

Maybe you need to do more reading on LTD's as you appear not to have the grasp yet. You can put it through the company (assuming you haven't fallen foul of the 24 month rule, look it up) but you only save the difference in tax. The rest still comes out of your pocket at the end of the day. You also use 45p/25p a mile, you don't claim for fuel.

NLUK is quite right, Company Cars are not worth it unless you have a car that is not worth driving! (I.e. electric car)

You'll be much better off claiming mileage. 45p for first 10,000 miles.

[northernladuk]

Start my new contract tomorrow for 3 - 6 months, But have to pay £5 pd in parking + £10 Fuel + Food
Just hope I can put it through my Ltd company now I'm set up.

Maybe you need to do more reading on LTD's as you appear not to have the grasp yet. You can put it through the company (assuming you haven't fallen foul of the 24 month rule, look it up) but you only save the difference in tax. The rest still comes out of your pocket at the end of the day. You also use 45p/25p a mile, you don't claim for fuel.

[cojak]

Start my new contract tomorrow for 3 - 6 months, But have to pay £5 pd in parking + £10 Fuel + Food
Just hope I can put it through my Ltd company now I'm set up.

You can certainly put parking and mileage through the books.

Not lunch though.

[CloudWalker]

Start my new contract tomorrow for 3 - 6 months, But have to pay £5 pd in parking + £10 Fuel + Food
Just hope I can put it through my Ltd company now I'm set up.

[CloudWalker]

Is the contract longer than 6 months and more than £220 per day?

Its a 3 to 6 month contract maybe more @ £175 pd

[northernladuk]

And are you on their rubbish Employed Consultant Model?

Because if you are you ain't a contractor.

This is the one Cojak is talking about...

http://forums.contractoruk.com/busin...g-rip-off.html

I don't think he will be as they would be employed directly by Hyphen, not through a LTD but my experience of this was a long time ago so they could have changed it by now. Still one thing to be aware of though.

[cojak]

And are you on their rubbish Employed Consultant Model?

Because if you are you ain't a contractor.

[LisaContractorUmbrella]

Is the contract longer than 6 months and more than £220 per day?

[northernladuk]

Thanks. I know there's a lot to read up on

My agency is Hyphen and I start my Local Government contract Monday.

Wish me luck. and I've no doubt ill be back

I take it you have had your contract reviewed and advised them it is a public sector contract?

If not get on to QDOS quickly.You can speak to them about Public Liability and Professional Indemnity insurance while you are at it.

I don't see any mails complaining about the contracts from Hyphen IR35 wise but I see the odd one about problems getting paid on time.

Have a read of the link below and maybe speak to Hyphen to understand how it affects you if at all as well.

http://forums.contractoruk.com/busin...ntracting.html

[CloudWalker]

Thanks. I know there's a lot to read up on

My agency is Hyphen and I start my Local Government contract Monday.

Wish me luck. and I've no doubt ill be back

[Clare@InTouch]

Call ClearSky and ask to talk to the person you'd be allocated to, and then ask them to talk you through things. You'll also find out that way whether or not you get on with the person you'll be dealing with

[cojak]

Hi CloudWalker,

While I haven't done it myself, here are a few articles in the CUK website

Limited Companies - Running a contractor company :: Contractor UK

Particularly:
IT Contractor Tax - What Taxes Will I Have To Pay? Corporation tax l Dividend tax :: Contractor UK
IT Contractors Questions: How to draw money out of a limited company? :: Contractor UK

But I'm sure that someone with direct experience will come along with some answers.

[northernladuk]

Tip 1: Speak to your accountant
Tip 2: Read their bumpf cover to cover
Tip 3: Do some research on expenses
Tip 4: Do some research on your legal responsibilities as a director
Tip 5: If you don't understand anything go to Tip 1.
Tip 7: Find a way to learn basic company finance and numbers.
Tip 8: Read up on the situation of contracting in the public sector
Tip 9: Research and understand IR35... very thoroughly.
Tip 10: Find out about the 24 month rule and apply it to your situation
Tip 11: Investigate the penalties for running your business badly and not fulfilling your legal obligations
Tip 12: Have a look at the link about Basic advice when running your company thread
Tip 13: Use the search method as explained in the FAQ section to search for anything before you ask a question
Tip 14: Don't take any advice from me

[TheFaQQer]

I'm just wondering if any one else has made the jump from Umbrella to Ltd and can give me some tips on "what to expect" and "what not to do"

Linky

HTH