Hi, I have a reasonable chance of getting my first day rate contract in IT business change at £425 per day. It's listed as being outside IR35. I went on an online calculator from some Umbrella provide and it said that £425 should work out at around £7550 a month as a LTD company, or £5600 per month through an umbrella company. The contract would be for 6 months.
Obviously the pay sounds quite a lot better as a LTD company but would it come with a lot of other obligations, expense and responsibilities/liabilities? I wouldn't really want to lose out on £2000 per month if i could help it. Is a LTD company hard/time consuming to set up? Also, I know it might sound bad but as this is my first day rate contract I wonder about the pressures of the role/what would be expected. If for any reason I can't provide the level of service that is expected (obviously I hope I can), am I at legal risk if I'm a LTD company in a way that i might not be as employed through an umbrella? What about if I left the contract early for any reason? Just wondering how this sort of stuff works in the real world. Thank you.
Obviously the pay sounds quite a lot better as a LTD company but would it come with a lot of other obligations, expense and responsibilities/liabilities? I wouldn't really want to lose out on £2000 per month if i could help it. Is a LTD company hard/time consuming to set up? Also, I know it might sound bad but as this is my first day rate contract I wonder about the pressures of the role/what would be expected. If for any reason I can't provide the level of service that is expected (obviously I hope I can), am I at legal risk if I'm a LTD company in a way that i might not be as employed through an umbrella? What about if I left the contract early for any reason? Just wondering how this sort of stuff works in the real world. Thank you.
Comment