You have the option to open your own limited company, to use a PAYE umbrella company or to use a tax avoidance scheme. If you have decided that contracting is the career for you, you are well organised and disciplined then a Limited Company would be the way to go (I say well organised and disciplined because various taxes payable through a ltd co are in arrears). If you are not sure about contracting long term, like security, don't like paperwork or are just not comfortable with the idea of running a business yet - an umbrella company would be a good route for you.
With regard to alternatives to Ltd Co or PAYE umbrella - there are many hundreds of options - loan schemes, EBT's, offshore schemes etc etc but you should be aware of the risks of using what HMR&C consider to be an avoidance scheme. The scheme provider will be unlikely to tell you of the risk but there is plenty of info available on this site.
HTH
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New to contracting!
Hi All,
Ive recently left my permanent role in the attempt to establish a succesful career in contracting!
I figured contractor UK would be a good place to start; meet some new people, find some work in the future (currently working in a 4 month contract - Data Analyst), get some tips and hints from fellow contractors about the industry.
Firstly, im undecided how to manage my finances. Can anyone help me? Peopple i work with have discussed umbrella companies, but Im not too sure i feel compfortable (im a bit of a wuss).. what are my other options???
Would appreciate some advice from experienced contractors.
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