The Leap......and a question ...obs :)

[jaspr]

Hello and tia. I've read a lot already I'm waiting for my contract to come through. I've gone umbrella but the more I read the more I wonder if its the right thing to do ! Anyhoo got a couple of questions I have searched but found no real answers.
First one, I know there'll be some difference but I'm yet to get even a ball park figure on the total setup costs for a ltd ? That's from scratch with accountant and whatever insurances required ? Ball park would be nice I've asked people at work but they seem to be vauge !

Also I'm going to be working 12 hour shifts days and nights what expenses can be claimed for that if any for the nights ? (7 - 7 monitoring, an it bridge type setup)

Thank you and hopefully one day I can give back.

Jase

[Wanderer]

I've gone umbrella but the more I read the more I wonder if its the right thing to do
I'm yet to get even a ball park figure on the total setup costs for a ltd ?

Also I'm going to be working 12 hour shifts days and nights what expenses can be claimed for that if any for the nights ? (7 - 7 monitoring, an it bridge type setup)

Hi and welcome!

1. Umbrellas are OK for starting out, they are dead easy to deal with and the way to go if you want a quiet life, you aren't a big earner or you will only be contracting for a few months. You will pay a lot of tax though so once you are on your feet you may want to consider LTD.

2. Check out the "PCG Startup Membership". About 100 quid to get your company up and running and then about 120 to 170/month plus VAT. It covers pretty much everything, insurance, accountant etc. Check it out because it gives you an idea of what you need to have in place. You can then shop around and see if you can get a better deal or perhaps buy all the bits from different places or just sign up and get it all sorted.

Once you've been trading for a year and found your feet, you can review the services and decide if you are going to stay on or find some other product that works better.

For expenses, you can claim for travelling, hotels etc and perhaps for meals/subsistence. I'm not 100% sure though, I'm sure people here will know the answers though some of them can be a bit grumpy. Lots of umbrellas let you claim about 20 quid a day if you work 12 hour days. You do have to incur the expense and keep the receipts in case HMRC ever decide to query your expenses.

If you go LTD then you want to make sure your contract is outside IR35 too. Don't give up and presume it's IR35 caught, it's not too difficult to get it reviewed and the potential tax savings are massive.

[jaspr]

thank you

Thank you just what i was looking fro

[LisaContractorUmbrella]

Wanderer is right about nearly everything but I would query the meals allowance simply because 12 hours is your normal working day - HMR&C would usually only allow for meals if your hours were exceptional e.g. if you normally worked an 8 hours day but a system problem meant that you were there for 12

[jaspr]

thank you

Thank you Lisa, I assumed it was due to my leaving the house before 6.30 ? and getting home after 19.30 ?

Jase

[Wanderer]

Wanderer is right about nearly everything but I would query the meals allowance simply because 12 hours is your normal working day - HMR&C would usually only allow for meals if your hours were exceptional e.g. if you normally worked an 8 hours day but a system problem meant that you were there for 12

Thanks for clarifying that. I do see that some brolly companies allow a flat rate of subsistence to be claimed, something like 20 quid a day when working more than 11 hours per day or something.

Of course, the golden rule is that if you didn't actually incur the cost then you can't claim it but it seems that different umbrella companies have different interpretations of what expenses incurred are allowable under the HMRC rules.

[LisaContractorUmbrella]

Thanks for clarifying that. I do see that some brolly companies allow a flat rate of subsistence to be claimed, something like 20 quid a day when working more than 11 hours per day or something.

Of course, the golden rule is that if you didn't actually incur the cost then you can't claim it but it seems that different umbrella companies have different interpretations of what expenses incurred are allowable under the HMRC rules.

Some do operate scale rates Wanderer but they still work in the same way as any other expense - it has to be incurred first. Scale rates were first used by HMR&C themselves to save on paperwork - it was easier to give everyone £4.95 per day who was entitled to claim for lunch rather than processing lots of small claims for sandwiches. However, staff would still have to prove that they had incurred a cost and that they were actually entitled to claim for the expense in the first place - that means being on detached duty (or away from their normal place of work)

[LisaContractorUmbrella]

Thank you Lisa, I assumed it was due to my leaving the house before 6.30 ? and getting home after 19.30 ?

Jase

It doesn't make a difference unfortunately Jaspr as those are your normal hours of work