HELP!!!!!

[LisaContractorUmbrella]

Whelp, actually just waiting for my new contract (I've actually still got a week or two of invoicing through the umbrella left). I'm trying to be careful, but any feedback on the below essay would be good!

The new contract should hopefully be the same as the old, except with my Ltd of course, and a nice rate bump.
The contract itself says nice stuff about "expected number of hours a week", not mandated. This has been true over the past year - I'm on a daily rate and often work shorter hours each day, but then will hold Webex sessions late at night, e.g. for Australia, or put in a few hours at the weekend if something wasn't ready for me on Friday but my work is needed Monday.
The role is aimed at tasks to complete a specific project (the extension is due to delays with the Dev team). Being a global deployment they have different regions going live and the delays are with readiness for each region. In addition there is constant development for live regions. I work in training, and as well as supporting deployment I'm also developing materials for the refits, so I've always got billable work to do, even if the deployment is delayed.
My "tasks" are to provide training to support the deployment and ongoing dev work. I decide how to do that (along with the rest of the team of contract trainers) - the only real direction / control is that I'm told when to train, and where, but that's obviously due to the project - I can't train on something until it's been developed, and I need to be onsite in Oz / North America / wherever to do that.

Once I have my contract I may put it through QDOS, but what else should I be looking out for? I'm really new to this (relied on my umbrella to sort things for the past year), but any tips would be great.

It would be a good idea to have the contract looked at by a professional company but should also read this http://www.hmrc.gov.uk/ir35/guidance.pdf. If you are going to work outside IR35 you should be aware of the risks and make sure that you have a good understanding of the primary indicators - be aware though, you need to keep up to date with all this sort of thing as HMR&C have been known to move the goal posts

[Ticktock]

And how have you ensured that your working practises will place you outside of IR35?

Whelp, actually just waiting for my new contract (I've actually still got a week or two of invoicing through the umbrella left). I'm trying to be careful, but any feedback on the below essay would be good!

The new contract should hopefully be the same as the old, except with my Ltd of course, and a nice rate bump.
The contract itself says nice stuff about "expected number of hours a week", not mandated. This has been true over the past year - I'm on a daily rate and often work shorter hours each day, but then will hold Webex sessions late at night, e.g. for Australia, or put in a few hours at the weekend if something wasn't ready for me on Friday but my work is needed Monday.
The role is aimed at tasks to complete a specific project (the extension is due to delays with the Dev team). Being a global deployment they have different regions going live and the delays are with readiness for each region. In addition there is constant development for live regions. I work in training, and as well as supporting deployment I'm also developing materials for the refits, so I've always got billable work to do, even if the deployment is delayed.
My "tasks" are to provide training to support the deployment and ongoing dev work. I decide how to do that (along with the rest of the team of contract trainers) - the only real direction / control is that I'm told when to train, and where, but that's obviously due to the project - I can't train on something until it's been developed, and I need to be onsite in Oz / North America / wherever to do that.

Once I have my contract I may put it through QDOS, but what else should I be looking out for? I'm really new to this (relied on my umbrella to sort things for the past year), but any tips would be great.

[LisaContractorUmbrella]

And you can claim ALL your business expenses, not just those that the Umbrella has a dispensation for.

A dispensation just means that the umbrella company doesn't have to include those items listed on a P11D - it doesn't mean that they can only process expenses for those items listed

[Andrew at Boox]

Having just come out of an Umbrella company and into my Ltd, I was pretty shocked when looking back and realising that I was only taking home about 65% of my invoices.
I think I retained more when I was a permie (although of course the rate was lower).
Now I'll just be on dividends for the rest of this tax year, then next year a small salary & dividends, and even considering CT will be taking home a lot more.

And you can claim ALL your business expenses, not just those that the Umbrella has a dispensation for.

[LisaContractorUmbrella]

Having just come out of an Umbrella company and into my Ltd, I was pretty shocked when looking back and realising that I was only taking home about 65% of my invoices.
I think I retained more when I was a permie (although of course the rate was lower).
Now I'll just be on dividends for the rest of this tax year, then next year a small salary & dividends, and even considering CT will be taking home a lot more.

And how have you ensured that your working practises will place you outside of IR35?

[Ticktock]

Having just come out of an Umbrella company and into my Ltd, I was pretty shocked when looking back and realising that I was only taking home about 65% of my invoices.
I think I retained more when I was a permie (although of course the rate was lower).
Now I'll just be on dividends for the rest of this tax year, then next year a small salary & dividends, and even considering CT will be taking home a lot more.

[sunflower]

Check the limited scenario out and look at different umbrella companies. They don't all charge such huge fees. SJD has got a payroll option and I think it costs about 85 pounds per month.

Choosing a limited might depend on how much your contract is or how long you want to freelance. A limited might not be the most efficient solution if your contract value is less than 25k per year becuase of the added accountancy fees.

[ASB]

Depending on your circumstances often the take home pay is much higher because you can earn dividends from your company that are effectively taxed at 0% (below £42,475).

True, but of course to get the money to pay the dividends it has already been subject to 20% corporation tax.

Outside IR35 the real saving comes from lack of NI on the dividend route.

[LisaContractorUmbrella]

Anytime

[Andrew at Boox]

Perhaps it would have been prudent to mention that these wonderful returns can only be gained if the contractor is outside IR35?

Indeed Lisa - thanks for pointing that out.

[LisaContractorUmbrella]

Definitely check out the accountancy route and using your own Limited Company. Depending on your circumstances often the take home pay is much higher because you can earn dividends from your company that are effectively taxed at 0% (below £42,475). Plus you can pay yourself a salary at a level where you don't pay PAYE or NI either.

Ltd company accountancy services nowadays are cheaper because of all the online facilities that you get. A good contractor accountant will be able to give you an accurate comparison.

Perhaps it would have been prudent to mention that these wonderful returns can only be gained if the contractor is outside IR35?

[Andrew at Boox]

Limited Company tends to be better

I am just about too embark on contracting for the first time.
Why do people tend to shun away from the Accountancy route and go the Umbrella route?
Are they better?? I just had one company call me and state they would take 15% of my weekly wages for their service which equates to over £150!
Anyone recommend a good umbrella company I was going to give Gary Barlow a call xx

Definitely check out the accountancy route and using your own Limited Company. Depending on your circumstances often the take home pay is much higher because you can earn dividends from your company that are effectively taxed at 0% (below £42,475). Plus you can pay yourself a salary at a level where you don't pay PAYE or NI either.

Ltd company accountancy services nowadays are cheaper because of all the online facilities that you get. A good contractor accountant will be able to give you an accurate comparison.

[MyUserName]

Well I had a good training session tonight.

[stek]

15 - who's sockie is this then? very poor!

[BendyKendy]

I am just about too embark on contracting for the first time.
Why do people tend to shun away from the Accountancy route and go the Umbrella route?
Are they better?? I just had one company call me and state they would take 15% of my weekly wages for their service which equates to over £150!
Anyone recommend a good umbrella company I was going to give Gary Barlow a call xx