Reply to: perm to contracting - best option going forward

[burnzdog]

I had a 3 month gig in between 2 perm jobs back in 2004 (didn't go full on contracting until 2009). Umbrella was the obvious route when I was told about it, even without worrying about expenses.

Given that you've got no expenses, then the tax breaks on mileage, etc. won't apply as an offset for the accountancy, insurance and other associated costs. If you're inside IR35, you've got all the accounting and other costs over and above the umbrella costs, with all the hassle as well.

Agreed and understood, thank you for your advice.

[burnzdog]

What answer do you want? London Manc clearly stated he thought it was not a good idea and gave reasons.

Shhh... go about your day. Stop hanging around forums, its very sad.

[LondonManc]

I simply asking to understand a bit more, the only thing im determined to do is make the right decision. Sorry about that!

I had a 3 month gig in between 2 perm jobs back in 2004 (didn't go full on contracting until 2009). Umbrella was the obvious route when I was told about it, even without worrying about expenses.

Given that you've got no expenses, then the tax breaks on mileage, etc. won't apply as an offset for the accountancy, insurance and other associated costs. If you're inside IR35, you've got all the accounting and other costs over and above the umbrella costs, with all the hassle as well.

[jmo21]

Its not a matter of believing.

What answer do you want? London Manc clearly stated he thought it was not a good idea and gave reasons.

[burnzdog]

It might do. Whether that's worth the effort is a different question.

Thank you Ol Greg, you are both scary and wise.

[Old Greg]

I simply asking to understand a bit more, the only thing im determined to do is make the right decision. Sorry about that!

You need to provide more info, e.g.:

Will the contract be inside or outside IR35?
If in permanent employment, how much would your salary be?
Are you married or in a civil partnership and if so, does your spouse work and if so what is his/her salary?

[Old Greg]

No.

It might do. Whether that's worth the effort is a different question.

[burnzdog]

Just do what you want, you're clearly determined to.

I simply asking to understand a bit more, the only thing im determined to do is make the right decision. Sorry about that!

[LondonManc]

Can you elaborate on your answer?

Just do what you want, you're clearly determined to.

[burnzdog]

No.

Can you elaborate on your answer?

[SueEllen]

But wouldn't the amount saved through a ltd company (compared to a brolly) for just 3 months cover the expense of paying for an accountant, the ltd company, and cost of dormancy for the rest of the year?

No.

[burnzdog]

Do you not believe the post you quoted?

Its not a matter of believing.

[jmo21]

If you're simply dipping your toe into the water, brolly would be a far more straightforward option, especially for a 3-monther given that an accountant would charge for a full year as they would have to do year-end work regardless of how long you trade for; throw in same for any required insurances and it becomes a no-brainer to go brolly.

But wouldn't the amount saved through a ltd company (compared to a brolly) for just 3 months cover the expense of paying for an accountant, the ltd company, and cost of dormancy for the rest of the year?

Do you not believe the post you quoted?

[Old Greg]

But wouldn't the amount saved through a ltd company (compared to a brolly) for just 3 months cover the expense of paying for an accountant, the ltd company, and cost of dormancy for the rest of the year?

Will the contract be inside or outside IR35?

[burnzdog]

If you're simply dipping your toe into the water, brolly would be a far more straightforward option, especially for a 3-monther given that an accountant would charge for a full year as they would have to do year-end work regardless of how long you trade for; throw in same for any required insurances and it becomes a no-brainer to go brolly.

But wouldn't the amount saved through a ltd company (compared to a brolly) for just 3 months cover the expense of paying for an accountant, the ltd company, and cost of dormancy for the rest of the year?