Paye, umbrella or limited company???

[Friendly advisor]

I start a new contract next week. It's for 3 months and about £400 per day. I need to make a decision quickly if I should set up a limited company with the associated costs of insurance, accountants etc., go with an umbrella company costing c£28/week or just go good old PAYE.
Any advice would be appreciated!

Hello, if you are operating outside of IR35 then you will be better off using a limited company on a daily rate of £400. The tax advantages will be significantly greater than any costs incurred (ie the accountancy fees will be similar to the fees charged by an Umbrella scheme - £28 per week is a fairly typical cost accountants charge for limited companies).

[cojak]

Hello, if you are operating outside of IR35 then you will be better off using a limited company on a daily rate of £400. The tax advantages will be significantly greater than any costs incurred (ie the accountancy fees will be similar to the fees charged by an Umbrella scheme - £28 per week is a fairly typical cost accountants charge for limited companies).

Only if you plan on being a contractor for more than a year and you don't mind the extra work involved in running a Ltd.

Otherwise I'd stay with an umbrella.

[LisaContractorUmbrella]

Hello, if you are operating outside of IR35 then you will be better off using a limited company on a daily rate of £400. The tax advantages will be significantly greater than any costs incurred (ie the accountancy fees will be similar to the fees charged by an Umbrella scheme - £28 per week is a fairly typical cost accountants charge for limited companies).

WCS plus you have the costs associated with opening and closing a Ltd Co - not worth it for a 3 month contract IMHO