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Contracting - Limit company v umbrella?

Discussion in 'Employment & Jobs' started by damo101, May 13, 2008.

  1. damo101

    damo101 Byte Poster

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    Hi guys,

    Just scored a contracting gig (yay!:biggrin) and as it's my first my brain is a bit fried on what to do about the money side of things:eek:. Fairly sure it's not going to fall outside of the IR35 - 9 month contract.

    So, what to do? Happy enough to jump thru the hoops to set up a company and bank account (might be a bit pushed for time to get it all done and dusted before I start the job). Would I better off going with an umbrella company for starters and switching to a limited company at a later date (not sure how easy this will be either)?

    Any suggestions/pointers/recommendations would be great,

    TIA

    Damo
     
    Certifications: ITIL Foundation and Practitioner (S&R)
    WIP: OU Cert in Web Design
  2. Fastracksteve

    Fastracksteve Bit Poster

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    Hi Damo,

    It's really easy to set up your own Ltd company. Infact it took me 10 minutes online. Bank accounts are the same. Set up your own, why let anyone else take your "hard earned"

    Just get yourself a good contractor savvy tax advisor :biggrin


    Best of luck to you :D
     
    Certifications: CCDA ACSE CCWA Mitel SX2000 & 3300
  3. supernova

    supernova Gigabyte Poster

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    With a LTD you also have to have a secretary or nominee secretary (eg accountant) , however, this is changing soon with any luck.

    And don't forget insurance.

    Andi
     
    Certifications: Loads
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  4. Fastracksteve

    Fastracksteve Bit Poster

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    It changed last month Andi :)
     
    Certifications: CCDA ACSE CCWA Mitel SX2000 & 3300
  5. supernova

    supernova Gigabyte Poster

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    Yeah of course it must have we've had this years changes to the Companies Act. I lost track since I stopped bookkeeping.

    Andi
     
    Certifications: Loads
    WIP: Lots
  6. Fastracksteve

    Fastracksteve Bit Poster

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    No worries Andi, I'm about to sack my Mother as I type this lolol:D
     
    Certifications: CCDA ACSE CCWA Mitel SX2000 & 3300
  7. csx

    csx Megabyte Poster

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    I'm currently using an umbrella company (Parasol). Would like to go LTD but not sure on the tax IR35 that's involved?
     
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  8. Fastracksteve

    Fastracksteve Bit Poster

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    IR35 is a pain, but if you're sure your contract complies. Not a problem. 8)
     
    Certifications: CCDA ACSE CCWA Mitel SX2000 & 3300
  9. supernova

    supernova Gigabyte Poster

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    LMAO

    Andi
     
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  10. damo101

    damo101 Byte Poster

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    Cheers guys, really appreciate the advice

    checked out the company bit - looks fairly painless.

    Pretty sure i'll be ok with the IR35 - 9 month contract and i doubt i'll look for an extension.

    I was under the impression a business bank account is needed and that could take up to 2 weeks to set up - am I way off the mark with this? Hope I am.

    Accounts I'm thinking are hit and miss - personal recommendations are the way forward with this.

    Thanks a million with the help - you've all helped burn off some of the fog!!!!

    Damo
     
    Certifications: ITIL Foundation and Practitioner (S&R)
    WIP: OU Cert in Web Design
  11. csx

    csx Megabyte Poster

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  12. Fastracksteve

    Fastracksteve Bit Poster

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    No worries Damo.

    Seem to remember that my business account was set up in 4 days so again shop around 8)
     
    Certifications: CCDA ACSE CCWA Mitel SX2000 & 3300
  13. damo101

    damo101 Byte Poster

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    Thanks again guys,

    Steve, you don't mind me asking what bank you're with?

    cheers

    D.
     
    Certifications: ITIL Foundation and Practitioner (S&R)
    WIP: OU Cert in Web Design
  14. Fastracksteve

    Fastracksteve Bit Poster

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    Hope I'm not in breach of forum rules but Alliance and Leciester. Very helpful they are as well. :D
     
    Certifications: CCDA ACSE CCWA Mitel SX2000 & 3300
  15. damo101

    damo101 Byte Poster

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    Thanks again Steve,

    getting there slowly but surely - signed up for a company yesterday and once it gets confirmed I'll head off to the bank and see about the account.
     
    Certifications: ITIL Foundation and Practitioner (S&R)
    WIP: OU Cert in Web Design
  16. Fastracksteve

    Fastracksteve Bit Poster

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    Fantastic, and best of luck with the new venture. PM me if I can be of any help to you. 8)
     
    Certifications: CCDA ACSE CCWA Mitel SX2000 & 3300
  17. damo101

    damo101 Byte Poster

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    Thanks Steve,

    got the company set up - applied for it on saturday thur a site (not sure if i can give the link) for £20 and it was listed as pending on the Monday, approved on the Tuesday and I was able to get the director details (which you need to pay £1 for) yesterday (these were needed to give to the agency and handy for the bank too).

    Was in A&L today and filled in the forms, they said it'll take about 2 weeks to get it fully set up (ATM cards, etc) but prob have the account details in about a week.

    Going pretty smoothly thanks mainly to Steve's advice (and partially down to not rushing it all and trying to get it done in a few days).

    Couple of things left to do - accountant (probably can leave that for a few weeks) and need a background check (not sure everyone needs to do this, think it's a requirement of the client more than anything else).

    I'll pop up updates as I go along so hopefully other people might get some benefit from steve's advice and how I'm fairing if the thread being on the front page of this section

    Damo
     
    Certifications: ITIL Foundation and Practitioner (S&R)
    WIP: OU Cert in Web Design

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