moving to umbrella from ltd

**malvolio** · 5 November 2013, 20:39

Originally posted by BlueM00n View Post

I have been contracting nearly a year through a limited company option, but now I am thinking of moving towards a umbrella company due to burdens of paperworks. A first few months, I had problems with an accountant recommended by an agency. My current accountant is efficient but too much paperworks (e.g. self assessment etc).
I may stay as a contract another 6 months or a year.

Would closing my ltd company and going to an umbrella now be a bad idea?

Any advice would be appreciated.

If the burden of an hour or two a month is too much and you don't mind possibly losing 20% of your net income depending on your IR35 status, going umbrella is easy enough and probably quite a good idea. You will need to do something with your company though, so talk to the accountant.

**LisaContractorUmbrella** · 6 November 2013, 07:48

Originally posted by BlueM00n View Post

I have been contracting nearly a year through a limited company option, but now I am thinking of moving towards a umbrella company due to burdens of paperworks. A first few months, I had problems with an accountant recommended by an agency. My current accountant is efficient but too much paperworks (e.g. self assessment etc).
I may stay as a contract another 6 months or a year.

Would closing my ltd company and going to an umbrella now be a bad idea?

Any advice would be appreciated.

If you are outside IR35 then there would be no financial benefit to moving to an umbrella company although the paperwork would be less; if you are inside IR35 and you don't enjoy running your company then it would be a good move for you