Working as a contractor - Ltd company

Jason_Denver

I have been offered some temporary project management work for a local authority but they want me to work self employed via my own limited company rather than an agency.

1) How do I go about claiming expenses working this way?
2) can I work through an umbrella company?
3) Is this a bad idea? Whats he benefit for me?

Jason

Premier_2

You bill the client according to the terms of the contact agreed.

Either add the overheads to the cost you are charging them (however that is calculated) or agree to bill them on a 'time & materials' basis.


Edit: See also the other thread you created asking the same question
https://forums.moneysavingexpert.com/discussion/2549777

Pennywise

Do you really want to be self-employed? No paid holidays, no sick pay, no other "perks" of employment? At the very least, your hourly rate should be substantially more than for a paid employee, just to cover the costs of overheads, your own sick/holidays, alternative pension arrangements, and lack of job security. I'd say a premium of 25% to 50% over the employee rate is appropriate especially when the "employer" is also saving 13.8% employers national insurance!

If it's short term (6 months or less), you're probably best going through an umbrella simply to save you the costs of hassle of formation of a company, accountancy fees, closing down the company, etc etc.

Get an accountant before you even start to think about forming the company - in the long run, you'll save money and hassle as opposed to trying (and probably failing) to do it yourself, making costly mistakes along the way.