Reply to: is my contract worth opening a company?

[Jessica@WhiteFieldTax]

For a brolly I agree, but I didn't think the same applied to LtdCo as I can no find no mention of 'intention to pursue further contract' when talking about LtdCo's in the HMRC expense rules. Quite possibly a typically grey area, just the way HMRC likes it.

Yep spot on. I've never seen it taken as a issue but it could be. My point is the Temporary Workplace rules apply just the same to a brolly as a PSC, just HMRC have special guidance for brollys non how to **apply** them. The playing field, roughly, should be level though.

[captainham]

The argument is that if you are only doing one gig it is your permanent place of work. To us they are temporary as we move from client to client. I hadn't heard of this before but it came up in a brolly thread the other day and on the face of it makes sense but if you don't intend on doing one gig it isn't an issue.

For a brolly I agree, but I didn't think the same applied to LtdCo as I can no find no mention of 'intention to pursue further contract' when talking about LtdCo's in the HMRC expense rules. Quite possibly a typically grey area, just the way HMRC likes it.

[northernladuk]

I'm not arguing with going brolly for 3 months, but I appear to be missing something here...if he goes LtdCo anyway, then he can still claim expenses, as long as he doesn't expect to be there for longer than 24 months?

The argument is that if you are only doing one gig it is your permanent place of work. To us they are temporary as we move from client to client. I hadn't heard of this before but it came up in a brolly thread the other day and on the face of it makes sense but if you don't intend on doing one gig it isn't an issue.

[captainham]

But if he is one contract wonder, he wouldn't be able to with his own company either. Same issue, no "temporary" workplace just a "workplace".

I'ld still go umbrella for simplicity on 3 months.

NB my firm doesn't do 'brollys so I'm being reasonably objective...

I'm not arguing with going brolly for 3 months, but I appear to be missing something here...if he goes LtdCo anyway, then he can still claim expenses, as long as he doesn't expect to be there for longer than 24 months?

[dogzilla]

What does it cost to incorporate on-line? Like £30? Get an reasonably priced accountant who's happy to work for 3 months at least , you never know it might get extended.

Still gonna be saving yourself a fair amount compared to PAYE. It just depends whether you can be arsed.

[Jessica@WhiteFieldTax]

But remember if it is a one off he can't claim travelling expenses I believe if recent threads are anything to go by.

But if he is one contract wonder, he wouldn't be able to with his own company either. Same issue, no "temporary" workplace just a "workplace".

I'ld still go umbrella for simplicity on 3 months.

NB my firm doesn't do 'brollys so I'm being reasonably objective...

[northernladuk]

thanks for pointing to this thread.
i know i can find general information over google. what i was expecting is some personal advice like minimum accountancy fee is 180 gbp per month and your salary is 2600 gbp per month and 1 time company opening fee is 100........ so your take home would be................... something like that...

That is where you do your homework unfortuantely. There are threads to help but at the end of the day it comes down to you. I did a thread for recommended accounts so that might help you pick on and then give them a call to answer your questions..

http://forums.contractoruk.com/accou...-requests.html

[Jeremiah@RHJAccountants]

thanks for pointing to this thread.
i know i can find general information over google. what i was expecting is some personal advice like minimum accountancy fee is 180 gbp per month and your salary is 2600 gbp per month and 1 time company opening fee is 100........ so your take home would be................... something like that...

My suggestion would be to speak to an accountant and umbrella and see what advice they can give you on the take home pay for each.

Also do as much research as possible as the more you know the better look at calculators etc.

Last thing it all depends if you are going to be contracting for three months or longer as to which is better for you Ltd or Umbrella

[Zippy]

Seriously WTAS.

You need to look at the calculators, plug in the amounts you expect to be spending on travel and subistence (you do know you'll need receipts, right?) and compare the numbers.

[Old Hack]

thanks for pointing to this thread.
i know i can find general information over google. what i was expecting is some personal advice like minimum accountancy fee is 180 gbp per month and your salary is 2600 gbp per month and 1 time company opening fee is 100........ so your take home would be................... something like that...

Bob a job is coming up, ask one of them

[pappa]

thanks

I can point out that this is the Business/Contracts section of the forum, not the Finance. In the Finance section there is a sub fora dedicated to Umbrellas in which you will find some threads that will answer your question such as...

http://forums.contractoruk.com/umbre...composite.html

http://forums.contractoruk.com/umbre...fraid-ask.html

Also do a search for contractor calulators. You will find the tools to compare the take home of you running and LTD vs a Brolly to help you make the choice.

thanks for pointing to this thread.
i know i can find general information over google. what i was expecting is some personal advice like minimum accountancy fee is 180 gbp per month and your salary is 2600 gbp per month and 1 time company opening fee is 100........ so your take home would be................... something like that...

[pappa]

can't cook or drive

If you're only on £130, I'd steer clear of contracting; you can earn more in Private Hire Car's, or as a chef, in a good Indian restaurant, or as a hospital porter, they earn a good crack...

thanks for suggestion but I can't cook or drive

[Old Hack]

hello world,
i am very new to contracting world.
i got 3 months of contract, pay is 130 gbp per day.

what do you suggest? should i join umbrella company? or open my own limited company? which option would give me more money (net income)?

i can handle hassle involved with opening a company if it gives me more money - in fact i think it's no more of hassle if you go with accountant - they do all paper work.

anyway, please suggest.

my expenses are going to be on public transport and food, primarily.

thanks.

If you're only on £130, I'd steer clear of contracting; you can earn more in Private Hire Car's, or as a chef, in a good Indian restaurant, or as a hospital porter, they earn a good crack...

[northernladuk]

As a rule of thumb, three months is a good cut off point.

If this will be a one off, then I'd say Umbrella.

If you can anticipate it going longer the think about your own company.

But remember if it is a one off he can't claim travelling expenses I believe if recent threads are anything to go by.

[Jessica@WhiteFieldTax]

As a rule of thumb, three months is a good cut off point.

If this will be a one off, then I'd say Umbrella.

If you can anticipate it going longer the think about your own company.