Setup a ltd or not

[kali]

I asked my father who contracts in accountancy work for Hays, Michael Page and the like whether I should set up my own limited company.

He already has a limited company of his own so I expected him to opt for that. However, he saw the service i was being offered by Parasol and said he wished he had gone for that. He advised that setting up and most importantly running the company made it too complex for a small time contractor like me.

Utter tosh... not complex at all. Provided you do some homework (the net is your friend) and get a good accountant it's perfectly straightforward.

And aside from the obvious benefits of managing my company's affairs and cashflow, my accountant fees are less than Parasol's admin charges.

The only time I'd recommend using an umbrella is maybe for first time contractors who are unsure if contracting is right for them and want to try it for a few months to make sure.

HTH

[HermanDune]

Is it worth me getting married then?!

My girlfriend is only earning about 12 grand as a recently qualified nurse. Perhaps I could make use of her unused allowance.

Can I put the wedding through as a limited expense?

[Archangel]

I have to agree. It is not complex at all provided you have the right advice, and I would have to seriously doubt the advice of any accountant that said it was.

Another one in agreement here!

Why give an extra 20% to Brown/Darling when you don't have to? (and that's before using any spouse's tax allowance)

[Gonzo]

In my opinion, he's wrong. It isn't complex at all.

I have to agree. It is not complex at all provided you have the right advice, and I would have to seriously doubt the advice of any accountant that said it was.

[pmeswani]

Thanks guys. In case of not finding any job for 3-6 months, wouldn’t it look inappropriate in employee eyes?

I like to know what you will say in an interview, if you did/couldn’t have any contract for 3-6 months.

If someone asks why you haven't worked for 3 months, just tell them the truth. If someone asks why you haven't worked for 1 year, just tell them the truth.

Most companies fail in the first 2 years. No point setting up a company and then find you are going to fold it in a few months because you found a permanent job instead of a contract role.. Don't waste your time and money setting up a Ltd company until you are ready and are at the point of having a contract in your hand. It will be more embarassing if you set up your company and commit yourself to something that you may not decide to do in 6 months time.

About 2 years ago, I went down the route of setting up my own business with the intent of starting my own reseller in IT Security. I chickened out and disolved the company. Was gutted and disappointed. I felt that I deluded myself into thinking it would work and felt, at the time, that I would never set up my own company again.

I found my way into contracting by luck. Decided to set up a ltd company on my 2nd contract. Didn't do it straight away, just in case my first contract was just out of luck.

Don't rush... it's not worth it. Keep on looking for work. Apply for both permies and contracting role and hope you get a contract role.

[NotAllThere]

I asked my father who contracts in accountancy work for Hays, Michael Page and the like whether I should set up my own limited company.

He already has a limited company of his own so I expected him to opt for that. However, he saw the service i was being offered by Parasol and said he wished he had gone for that. He advised that setting up and most importantly running the company made it too complex for a small time contractor like me.

In my opinion, he's wrong. It isn't complex at all.

[HermanDune]

My accountant father says no

I asked my father who contracts in accountancy work for Hays, Michael Page and the like whether I should set up my own limited company.

He already has a limited company of his own so I expected him to opt for that. However, he saw the service i was being offered by Parasol and said he wished he had gone for that. He advised that setting up and most importantly running the company made it too complex for a small time contractor like me.

[jobpash]

Setup a ltd or not

Thanks guys. In case of not finding any job for 3-6 months, wouldn’t it look inappropriate in employee eyes?

I like to know what you will say in an interview, if you did/couldn’t have any contract for 3-6 months.

[NotAllThere]

If you get a contract, then set up a ltdco. It takes only a day.

In the meantime, study hard the benefit system and take 'em for every penny you can. Hope you find a job soon.

[jobpash]

Thanks pmeswani,

But if I don't find any job in a 3 to 6 months period, wouldn’t it be negative in the eyes of employers? In case of owning a Ltd, it might be easier, you could say that I did some small projects.

I wonder what would be appropriate way for guys with ltd to say to the next customer, especially when he/she hadn't have any contract for 3-6 month?

[pmeswani]

Hope I am not in the wrong place and not bothering you with my question.

At the moment I am looking for Unix/Windows System admin or field engineering job regardless of being permanent or contract.

One suggested applying for Job seeker allowance and keep apply for jobs (as far as I know, because of my wife income, I won’t get a penny from JSA)

One suggested to set up a Ltd co.

I am totally confused. I do not know the advantage or disadvantage of Ltd co even though I read the First Timers section.

Any advice would be greatly appreciated!

Personally I wouldn't recommend setting up a Ltd co until you have secured your first contract assignment. You don't know how long it will last, how much you will get paid or if it will be IR35 compliant until you get it. (This is just the tip of the iceberg of things you need to consider before starting a Ltd Company).

Apply for JSA (even if you don't get any money) as you may be entitled to something, such as reduced travel costs, help with interview techniques, help with Council Tax costs, Mortgage protection, etc. etc. And you may get help with finding some work.

It is better to become an official statistic on the jobless market than to become an unknown.

[jobpash]

Hope I am not in the wrong place and not bothering you with my question.

At the moment I am looking for Unix/Windows System admin or field engineering job regardless of being permanent or contract.

One suggested applying for Job seeker allowance and keep apply for jobs (as far as I know, because of my wife income, I won’t get a penny from JSA)

One suggested to set up a Ltd co.

I am totally confused. I do not know the advantage or disadvantage of Ltd co even though I read the First Timers section.

Any advice would be greatly appreciated!