Reply to: About to begin contracting

[The Spartan]

It's the good life, I love it so far

[Graham]

Things will soon change once you get a contract

aye, will be able to save money for a deposit as well as having more spare to enjoy life with

[The Spartan]

At the moment I have about £11 in my bank and about the same in my pocket

Things will soon change once you get a contract

[Graham]

Well done I hope it works out well for you

cheers

How close are you to having enough deposit for a house?? you may find it easier to get a mortgage if you're with an umbrella company, rather than a newly formed Ltd company with no accounts.

At the moment I have about £11 in my bank and about the same in my pocket
(plus about £1500 to pay off on credit cards)

[Joeman]

Thanks for the replies everyone.

Whilst I am tempted to go with an umbrella company due to it being easier. For me its all about the money (so I can save a deposit for a house) and I shouldn't have a problem with affording the time to learn whats needed for running a LTd company.

That said, I'm still keeping my options open and not committing to either course yet

How close are you to having enough deposit for a house?? you may find it easier to get a mortgage if you're with an umbrella company, rather than a newly formed Ltd company with no accounts.

[The Spartan]

Well done I hope it works out well for you

[Graham]

Just to update this a bit...

I decided to go the Ltd route in the end and have gone with a local accountant who although being more expensive than the online ones advertised through here, gives me the peace of mind of having someone local I can just pop in to see if I need to ask anything etc.

Been a tough couple of weeks researching everything etc but almost all sorted now I think

[The Spartan]

FTFY

Come on man, you are a contractor now. Bit PMA required so you don't let the side down!!!

Lol well put I did indeed forget to put that in, especially after a 6 month stint I'll definitely deserve an increase

[northernladuk]

Hence why I'm with an Umbrella at the moment

I eventually plan to go Ltd but just not yet, we'll soon see come April when my current contract gets renewed at 20% more

FTFY

Come on man, you are a contractor now. Bit PMA required so you don't let the side down!!!

[The Spartan]

Hence why I'm with an Umbrella at the moment

I eventually plan to go Ltd but just not yet, we'll soon see come April when my current contract ends

[Joeman]

I disagree. The last thing you want to do on your first contract is getting yourself in all sorts of trouble you do not understand and cannot get yourself out of. Wing it when you know what you are doing, not before.

I did Umbrella for the first 6 months and it didn't do any harm bar a little less money which is now totally irrelevant 4 years later.

yeah, probably the better answer for a newbie..

[northernladuk]

If it was me i would go LTD and assume NOT under IR35.
Its a short contract, so by they time HMRC catch up with you, you may well have gone perm and folded the company, or moved on to another client, so it would be hard for anyone to show you were under IR35 for this first contract.

I disagree. The last thing you want to do on your first contract is getting yourself in all sorts of trouble you do not understand and cannot get yourself out of. Wing it when you know what you are doing, not before.

I did Umbrella for the first 6 months and it didn't do any harm bar a little less money which is now totally irrelevant 4 years later.

[Joeman]

If it was me i would go LTD and assume NOT under IR35.
Its a short contract, so by they time HMRC catch up with you, you may well have gone perm and folded the company, or moved on to another client, so it would be hard for anyone to show you were under IR35 for this first contract.

[Jeremiah@RHJAccountants]

Just to add my opinion

if it is a short term contract and you are a first timer testing the water i would go for the umbrella route.

if you are looking to make the move into contracting full time i would go down the Ltd routeyes it is more responsibility but it you can get a decent accountant who can offer you advice on Flate Rate Scheme VAT, tax planning and lots more.

What ever you decide good luck

[Graham]

Thanks for the replies everyone.

Whilst I am tempted to go with an umbrella company due to it being easier. For me its all about the money (so I can save a deposit for a house) and I shouldn't have a problem with affording the time to learn whats needed for running a LTd company.

That said, I'm still keeping my options open and not committing to either course yet