contracting/Ltd company/PAYE/offshore/umbrella

eismarsh

I have been offered a job, it is not permenant but is contract, on PAYE or Ltd money. The Ltd is a better rate.
Are all these companies that say they can get you more money (less taxation) able to do this or is it all swings and roundabouts ? Umberella, offshore, self employed agency employed, etc.. Which is best

Travelling 38 miles a day to the one place of work, 12 hr shifts starting at 7am and finishing at 7pm, with no official break, just have short at bench breathers...

Please steer me in the right direction..

Thanks.
Steve

cash99

Assuming this would be subject to IR35, if you go through an umbrella company , then you can treat part of your income as tax free expenses for your mileage to work and for meals at work. However you will have to pay the fee the umbrella charges, plus 11.4% of what is left as employers NIC. (This is probably why the Ltd company rate is higher.)

You also need to consider holiday pay, sick pay and any other benefits and protections you would get as an employee.

WHA

Have a look at:-

http://forums.contractoruk.com/threadnav7487-1-10.html

though as mentioned above, you really need to think about whether IR35 applies to you.

eismarsh

Its all a lot to take on board.. but I will work it out.

Thanks people. :beer:

sobek123

I came across this contractors guide the other day that pretty much explains everything quite clearly on ezine..

http://ezinearticles.com/?Payroll-Solutions---A-Contractors-Guide&id=1180583

rach29

Or look here for some good advice

http:///www.pcg.org.uk/