Ltd - Umbrella
Thanks for the replies.
My original contract was initially for 3 months, and now is rolling so I still have options (re: ending P4 agreement- or not as the case may be; just read some other posts on P4 contracts/(ending thereof), that didn't make me smile).
As you've suggested I may very well wait until next year to see if I'm keen to stay contracting before making a decision on going Ltd.
It's been shocking to read all the horror stories re: P4. Had I read them before I signed up I'm sure I wouldn't have done! I wasn't expecting their rep to be so bad because I must admit they have been accommodating for me. Originally they wanted to pay me monthly but after a certain amount of "persuasion" they agreed to cash advance me weekly (reflecting the pro-rata amounts received from my agency).
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Make sure you have met their minimum fee level. ISTR it was £1500, and they will deduct any shortfall from your final salary. You should be able to get a new contract drawn up at any time, although it's generally better to wait until renewal time.Originally posted by RocketdogLeave a comment:
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Yep - I would agree with all that. Keeping money over for sick pay for example.They're expensive, they prey on first-timers who don't know any better, and some of their promises and incentives to join them are totally in their favour, not yours. First-timers just don't realise that in the beginning though.
Having said that - I stand by my other post - it doesn't matter which Umbrella you pick, they are good for newbies trieing out contracting - but eventually you should just go ltd.Leave a comment:
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Yeah basically I thought P4 (and Parasolit) were ok - used them for 3 years as my first contract involved me working on my own with other permies and I didn't know any better until I went to a more contractor heavy contract (I have only had 2 contracts). Also the original agency (Alexmann) advised me to go with an umbrella and I foolishly believed that they were doing it for my good - what can I say - I was less cynical in those days!I haven't been treated at all bad for the past 5 months by the Umbrella, but have noticed I seem to be paying more tax and NI as time goes on.
I was certainly quite shocked to find the bad rep they have here (P4 that is). They always paid me on time etc. and apart from the niggling suspicion that I was paying too much tax/ni I was reasonbly happy. I switched to Parasol as their fees were less, but I found no difference between P4 and Parasol in terms of money I got - parasol had a better website, but that was about it.
Having said that - I now realise that I should have made the jump to a Ltd a lot sooner. The only reason for not doing it is if you are caught by IR35 and to be honest if you run your 'firm' as you should (get a website etc.) then you are pretty safeguarded from that. If you are outside IR35 then you are going to be better off as a Ltd. I made the switch 3 months ago and I seem to be a grand better off a month (at least) - but I have only been doing it 3 months so it is difficult to tell at the moment (plus I spent the first 3 months of the tax year at the Umbrella which has confused things as I have paid more NI than I should).
Basically - if you are just trieing out contracting then do the Umbrella as it is less hastle. If you are still contracting after 6 months then switch to Ltd.Leave a comment:
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I was in a similar situation with Prosperity4 except I was treated terribly, and had to tell their accounts person how to add up once, in addition to discovering how expensive they were compared to other brollies, so wanted to leave. My solicitor told me that it would be really difficult to extricate myself from Prosperity4's contract without penalties, and lost income. Her opinion was to ride out the current contract, take it on the chin as beginners bad luck, then spend the rest of my IT career advising people, based on personal experience, what I thought of Prosperity4. They're expensive, they prey on first-timers who don't know any better, and some of their promises and incentives to join them are totally in their favour, not yours. First-timers just don't realise that in the beginning though.
HTH.Leave a comment:
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Umbrella to Ltd...
Ths is quite interesting.
I'm considering switching from my umbrella (I won't say who they are through fear of retribution! *cough P4*) to a Ltd but I only have 5 months of my current contract left.
I haven't been treated at all bad for the past 5 months by the Umbrella, but have noticed I seem to be paying more tax and NI as time goes on.
Sorry for jumping into your post Lex, but could anyone advise if it would be worth (financially) going for a Ltd stance? There is a fair chance of extension(s), and the monthly gross is £3-5k depending on o/t. My expenses thus far have equated to @pprox £1k month. (Namely mileage).Leave a comment:
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I just switched - I waited until my renewal though.
As far as I am aware it is possible as my contract with Prosperity4 and Parasolit both had 4 weeks notice period in them.
YOu just need to do it through your agent.Leave a comment:
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In which case it will be entirely governed by the clause(s) in the contract(s) you signed governing termination of the agreement. What do they say?Originally posted by LexLeave a comment:
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Switching from Umbrella to Ltd mid contract or vice versa
Hi all,
Is it possible to switch from an Umbrella company to a Ltd company mid contract or even before the actual contract work has begun? The contract is between myself and an agency with the agency having an agreement with the end client.
Also if I had started on a contract for a month billing from my Ltd company but then wanting to switch to a form of Umbrella company in the middle of contract is this possible?
In both of the above scenarios I am saying that the relevant contract had already been signed by all relevant parties and then I had changed my mind. If this is possible can you please advise how one goes about doing this.
Many thanks.
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