Going direct for four weeks

[ASB]

Whilst I concur, I would hope this sort or S/E would fall under the same sort of cards in (or is it out?) the building industry uses; short/medium term projects, one project at a time.

I dunno tho - long time since I was ltd or s/e, I went llp last time and still paying the price....

Well, you might want to look up "CIS" - the Construction Industry Scheme.

HM Revenue & Customs: Construction Industry Scheme

Don;t know much about it's current incarnation since it was extensively revised about 3 years ago, but I know a lot of people who were somewhat scathing of it )some justly some less so!). The original intention was to avoid a lot of alleged evasion in the building game with people "on the tools". Oddly enough it seems to have resulted in few subbies being S/E anymore as far as I can work out.....

[Clare@InTouch]

U sure? I thought it was 9 months after year end...?

Also u can offset previous years tax against a s/e new start, or you could, things have prolly changed...

??

I wasn't implying any due date for CT, just that it would apply to a limited company in general.

The point is that you can delay any personal tax implications if you're limited, whereas if you earn £150k as a sole trader it will be taxed in the year you earn it. Bingo, 50% please. A lot higher than the potential 10% if you wait, keep it in the company and take a capital gain (even taking into account the c20% CT along the way).

You can offset personal tax losses if you're self employed, but unless the losses are massive it would be hard to outweigh the tax benefits of limited.

[stek]

You also have the issue with sole traders that all income is taxed straight away. A limited company may suffer CT, but it allows you to drip feed any personal income over more than one tax year (or store it up to take a capital gain upon closure).

U sure? I thought it was 9 months after year end...?

Also u can offset previous years tax against a s/e new start, or you could, things have prolly changed...

[Clare@InTouch]

Self-employed, no question. If there was no Agencies Act I think the whole contracting world would go sole-trader.

You also have the issue with sole traders that all income is taxed straight away. A limited company may suffer CT, but it allows you to drip feed any personal income over more than one tax year (or store it up to take a capital gain upon closure).

[stek]

Doubtful. The pronlem with S/E is that if somebody fails a status enquiry then they become the clients actual employee, thus there is risk to the client.

Whilst I concur, I would hope this sort or S/E would fall under the same sort of cards in (or is it out?) the building industry uses; short/medium term projects, one project at a time.

I dunno tho - long time since I was ltd or s/e, I went llp last time and still paying the price....

[ASB]

Self-employed, no question. If there was no Agencies Act I think the whole contracting world would go sole-trader.

Doubtful. The pronlem with S/E is that if somebody fails a status enquiry then they become the clients actual employee, thus there is risk to the client.

[stek]

Self-employed, no question. If there was no Agencies Act I think the whole contracting world would go sole-trader.

[ASB]

From a view of being most cost effective if you can just bill them directly it would probably be most efficient. They mau be reluctant to allow this - it is their choice. The potential impact on them is that you should ensure you pass the IR56 S/E tests.

From a view of taxation you can simply put it in the other income box on you tax return, though you probably should reigster as self employed with HMRC and file the relevant reports with them.

[VectraMan]

I would just go for the umbrella. You could do it yourself, but then you're a sole trader with the extra tax hassles that involves.

The more important question is is this a one off, or do you think you're going to look for another contract after the four weeks? If the latter, start your Ltd. now.

[d000hg]

Just bill them directly, invoices and contracts between <your-name> and <client-name>. Perfectly legal and normal if they are happy with it and you are happy they aren't dodgy. Maybe worth supplying your own contract, from PCG perhaps.

You are allowed to trade under a 'business name' without a company as long as you make it clear you are "John Smith trading as John Smith Consultancy", IIRC.

[badger7579]

Can they put you through their own payroll as PAYE. Not very tax efficient but in the short term it might be an option. Personally I'd be using my Ltd with a direct contract.

[joeDaddy]

Thanks for your reply

I don’t mind using an umbrella as it short term.

But when I spoke to the client; they just like me don’t want to use an agent
Is there any other way?

[northernladuk]

Via an agent/brolly

[joeDaddy]

I have just spoken to a client who would like me to go direct for about four weeks @ 280/pd.

I don’t have a ltd company, what would be the best way to go?

Thank you in advanced