variable rate contract and umbrella companies

[LisaContractorUmbrella]

Yes they usually can.

Geoff's structure is likely to have a company in-between the agency and self-employed person.

I need a bit more of an explanation for that to make sense Prozak

[geoff from contracta IOM]

I need a bit more of an explanation for that to make sense Prozak

If you read my earlier post Lisa you will see that we can handle someone who is self employed and the OP's agency would need to be in agreement with this.

[prozak]

I need a bit more of an explanation for that to make sense Prozak

My understanding of the structures of the EBT replacements is:

Agency -> Contracta Ltd Company -> Self Employed Person.

[geoff from contracta IOM]

My understanding of the structures of the EBT replacements is:

Agency -> Contracta Ltd Company -> Self Employed Person.

Thats correct Prozac, Lisa KUATB

[LisaContractorUmbrella]

Thats correct Prozac, Lisa KUATB

Oh OK - so what's the relationship between the Ltd Co and the sole trader? B2B presumably??

[geoff from contracta IOM]

Oh OK - so what's the relationship between the Ltd Co and the sole trader? B2B presumably??

I the the sole trader is registered as self employed, can provide a UTR number and give a declaration that they will declare all the income to HMRC then we are happy to work with them.

[LisaContractorUmbrella]

I the the sole trader is registered as self employed, can provide a UTR number and give a declaration that they will declare all the income to HMRC then we are happy to work with them.

so what's the relationship between the Ltd Co and the sole trader? B2B presumably??

[geoff from contracta IOM]

so what's the relationship between the Ltd Co and the sole trader? B2B presumably??

Sorry yes B2B

[berkleyn]

ughh!!

I've been offered a new contract which is atypical in as much as the work is piece-meal and the amount paid will vary according to the piece of work. Therefore, I will not have a fixed hourly or day-rate. I have used umbrella companies in the past so was planning on doing so again, but have been told by two umbrella companies that they cannot handle this type of contract. I am unclear whether this is to do with their systems, or whether there is a legal issue, as this was alluded to. Can anyone advise whether there is an option to use an umbrella for this type of contract or whether my only option is to go down the limited company route. Thanks in advance.

Thanks for all the replies. This particular contract does not involve an agency, however future contracts are likely to, so I want something that will work for both approaches, as I'm unlikely to go back to umbrella once I set up as sole trader/ltd/self-employed. Guess I'm not clear on best way forward - is discussing with an accountant the next best step ?

[malvolio]

Thanks for all the replies. This particular contract does not involve an agency, however future contracts are likely to, so I want something that will work for both approaches, as I'm unlikely to go back to umbrella once I set up as sole trader/ltd/self-employed. Guess I'm not clear on best way forward - is discussing with an accountant the next best step ?

Given agencies won't deal with Self employed people, your own Ltd Co is the most flexible and cost effective solution. Go to www.pcg.org.uk and download the Guide to Freelancing. That will explain all the options