1 Man Limited Company

I've worked as a contractor on a day rate a few times - last time I used a company called Parasol, who were pretty good - of course a lot depends on getting paid for your trouble, but I like the way they chase up payment if necessary and you leave it to them to sort out your tax, national ins and holiday pay/pension

https://www.parasolgroup.co.uk/maxi...MI_9zMsPPb5wIVQbTtCh3L0An6EAAYASAAEgKBcPD_BwE

 

I've always worked through my own limited company. It's easy but I have never pushed it in terms or taking a tiny salary and huge dividends. I like to keep it under the radar. Never bothered with an accountant.

 

I think that PLI was included with the Parasol package, but they run a free helpline to answer all your queries.

Can't speak for the Limited Company thing as I thought an umbrella company was a sight easier and I'm a lazy bstrd

 

Limited company for me, but HMRC have just driven all these jobs offshore by killing the industry so perm from April.

The info I found on umbrella meant I wouldn’t go near one, as I am saving hard for pension and they are no good for that. Plus (will Spence on industry I’d imagine) you have to pay both employee AND employer NI

do some research , loads of useful sites on google

 

So many parameters and it will greatly depend on your circumstances, get some professional advise before deciding as there are loads of hidden pitfalls - IR35 for instance - most good independent accountants would be happy to give some initial free help before charging you.

Good luck with the new direction whatever you decide.

 

Am presuming since they are asking you then the contract is outside of IR35??... I've used a Limited company for about 9 years now, but will look at an Umbrella again come April as my current contract is deemed inside so limited company is pointless..

If you're outside, a Limited company is easy to setup and manage and if you're contracting long term I'd defo recommend it

 

I did the contractor thing for a few years. Used Brookson. I thought they were very good and it was all very easy.

 

Go Ltd. Register for VAT. Get an Accountant. All very easy to do.

 

I was set up as limited in construction industry.
Never took a wage though, just bonus payments. Setting up paye is a pain best avoided.
There have been some changes since I stopped 1.5 years back, maybe, but still good for tax etc.
Even a just half decent accountant can save you money..

 

Yes, register for VAT. If your not buying much then going on the fixed scheme can be profitable. You charge 20% but only pass on 14.5%. It means that you can't claim back VAT on anything that you buy, though.

I do/did have professional liability insurance through Hiscox.

 

Go Ltd, and put your bike/s through the company!

 

This was something that I heard about but never did. Depends on you, though. I never could justify any business use of motorbikes and did not have any insurance covering business use.

I think that it is bit of a grey area but legislation is very specific relating to private use of company cars but does not mention motorbikes - implying that private use of a company motorbike is fine and not taxable!

 

I also was made redundant in O&G , and worked through agencies. Never got round to setting up a Ltd company but worked through an umbrella company. Be aware there is a big difference in what they offer and charge between one and another company. Luckily starting a permanent position next month.
Good luck.

 

Keep all your business dealings openly honest. You'll sleep better

 

I would get advice from a decent accountant to find out what's the best option for you. Last year I changed accountants after 18 years with my previous one.
At the initial meeting with the new accountant they saved me £1500 in personal tax in the first 5 minutes of conversation.

 

Ltd company if you can (outside IR35) I've just been assessed as still outside so easy for me to say. The flat rate VAT scheme is effectively no more so better not to go on that one just claim VAT back from each expense. Any accountant will keep you right and also do your PAYE for your salary.
If you have to go umbrella then shop around, be as many sharks there as pay day lenders

 

not any more. The flat rate is 16.5% of total invoice, not 14.5% of the pre-vat amount.

 

private use is taxable, but its a flat bik 20%. And you can buy all kit, servicing, insurance etc and its fully offset. Minus 20%. If business only, you can claim the vat back, then repay when sold (at the sale value, obvs)