PAYE or LTD ?

Quiznite

Thanks for Looking,

I have a 12 month contract with a company through an agencey.

The agencey have said I can be employed PAYE or can setup as LTD company and be employed that way.

The work is just for me as I am a surveyor and they won't acept me as a Sole trader so PAYE or LTD are my options.

I have always worked for an employer but if I can earn a little more through better tax rates etc I would be happy to go LTD.

They also pay an extra £1.50 an hour if I went LTD is this normal ? WHY ??

I don't mid spending an Hour a day filing hours / mileage etc on PC for accounts.
Also what benefits are there etc claim VAt back on internet/pc for business etc ???

How much should I pay for an accountant if you recommend one?

Any Advice more then welcome !

Thanks for your time reading this...

3plus1

They are presumably offering to pay you more as a contractor because there won't be any employer's NIC for them for pay nor will they have to put you on their payroll (their admin costs may be lower as a result).

However, do a search for "IR35" and make sure you understand what it is. If you set up a limited company and only perform work for this one company you've landed a 12 month contract with, you may put yourself in a vulnerable position. I've seen contractors caught by IR35 legislation before and it was absolutely horrible for them.

That's your starting point - hopefully fengirl will be able to provide some further advice.

fengirl_2

3 plus1 flatters me, but unfortunately, I left HMRC just before the introduction of the legislation in 2000, but here is the link:
http://www.hmrc.gov.uk/ir35/
My reading of it suggests that you would be caught by this because you would be an employee of the company if it was not for the existance of the intermediary company.
If I was you, I would invest in half an hour with an accountant - no point in setting up this arrangement if it isnt going to work.

Quiznite

Just come off the phone with an accountant...

He said the same as you, with the fixed hours and me just suppling myself I would come under IR35.

There goes the dream of playing golf everyday and watching loose women.

Thanks for all the advice !