New Member - Question

[gables]

If it looks like just a couple of months and you're really set on a permanent job in the future, so this would be a stop gap, then I'd go umbrella.

A contract being inside IR35 in itself is not a reason to turn it down. Using the Contractor Umbrella (fairly accurate) calculator £500/day for a 20 day month results in a net monthly income of £5,736.72 which may vary due to your specific tax position - granted it'll be less than non-IR35 but that's not to be sniffed at. And purely on a net pay measurement (I know there's more to it) to match this, a permie role will need to be of the order of £105k as calculated by The Salary Calculator

[LondonManc]

As was already pointed out to me in the two posts above

You do need telling twice a lot of the time though chuck

[northernladuk]

Only if it's *the* previous company, not *a* previous company.
.

As was already pointed out to me in the two posts above

[LondonManc]

It's highly likely you will be inside IR35. It can be debatable but for a couple of months it's probably just better to go brolly and forget that issue.

Only if it's *the* previous company, not *a* previous company.



OP, get a contract with start date, duration, rate per professional working day, deliverables, etc. Get it reviewed by QDOS and get a limited company formed and an accountant. In the meantime, read up on the newbie guides on the right hand side of this forum.

[northernladuk]

It's a previous company, not the previous one...

Ahhh. Right yes. Good point well made.

[malvolio]

Because with the total lack detail I'm happier assuming they've made the OPs position redundant but there is work still to do. IMO it's much more likely its going to be the same work I. E. a Friday to Monday situation than not. If we had more to go on the assumption might change but just throwing IR35 in there as it's another factor, along with duration that makes a brolly look more attractive.

There used to be a figure of around 30k where it was only worth going LTD if you were going more coming in. Not sure how that's changed with expenses stopping nowadays but still worth considering for the OPs situation.

It's a previous company, not the previous one...

Plus the OP isn't in this for the long term at this point...

Hence use an umbrella anyway.

[northernladuk]

I can't see anything that says it's IR35 caught. Why do you assume that it is?

Either way, umbrella is the way to go for short term work if you have no great intention of going contracting. And I would also endorse Contractor Umbrella, one of the few totally straight ones.

Because with the total lack detail I'm happier assuming they've made the OPs position redundant but there is work still to do. IMO it's much more likely its going to be the same work I. E. a Friday to Monday situation than not. If we had more to go on the assumption might change but just throwing IR35 in there as it's another factor, along with duration that makes a brolly look more attractive.

There used to be a figure of around 30k where it was only worth going LTD if you were going more coming in. Not sure how that's changed with expenses stopping nowadays but still worth considering for the OPs situation.

[DeludedKitten]

Hi,

I was made redundant recently and am searching for a new permanent job. In the meantime a previous company have offered me a contract on £500 per day, on an ongoing basis, but it won't go perm. Is it worth the effort of setting up a Ltd company for something that could only run for a couple of months, or better to just use an Umbrella company? Also, how quick is it to go either route, as contract could start on Friday!!

Many thanks
Graham

Either one can be done fairly quickly, IMHO - you can get a company registered in minutes, for example.

Question really is whether you are likely to do this for a while / stay contracting, or is this a one-off until you find something permanent. If you're going to keep this up then at that rate you'd be better off outside IR35 and through your own limited company. If you're not going to stay contracting then it'll be quicker, easier and you'll pay more tax by going through a reputable umbrella company (if it says 85%+ take home then it's not a reputable one and walk away).

Good luck with whichever route you choose.

[malvolio]

I can't see anything that says it's IR35 caught. Why do you assume that it is?

Either way, umbrella is the way to go for short term work if you have no great intention of going contracting. And I would also endorse Contractor Umbrella, one of the few totally straight ones.

[Clarky5]

Great, thank you very much. Having done some reading I was concerend about the IR35 side of things, so probably easier to avoid it in this case.

[northernladuk]

Pretty common question as well so we'll covered in these threads.
https://www.google.co.uk/search?q=co...obile&ie=UTF-8

[Clarky5]

It's highly likely you will be inside IR35. It can be debatable but for a couple of months it's probably just better to go brolly and forget that issue.

Thanks, having done some reading I was worried about it being caught in IR35 but it seems such a grey area!

[northernladuk]

Speak to Lisa and her team at Contractorumbrella if you want a good brolly. She posts in here a lot and were good when I used them.

[northernladuk]

It's highly likely you will be inside IR35. It can be debatable but for a couple of months it's probably just better to go brolly and forget that issue.

[Clarky5]

Hi,

I was made redundant recently and am searching for a new permanent job. In the meantime a previous company have offered me a contract on £500 per day, on an ongoing basis, but it won't go perm. Is it worth the effort of setting up a Ltd company for something that could only run for a couple of months, or better to just use an Umbrella company? Also, how quick is it to go either route, as contract could start on Friday!!

Many thanks
Graham