doing my own taxes

kimbab89

I am in need of some advice.

I am about to start contracting for a year so i have the option to either do my own taxes or pay an umbrella company to do it for me. The umbrella company would make things easier as i won't need to worry about taxes being paid correctly but they are going to take £300 a month out of my wages on top of taxes to do this for me! so i was wondering if anyone can give me advice whether i should do it myself or not? i am completely new to all this so any help would be hugely appreciated!

Thank you

InsideInsurance

What day rate are you looking at? Are you going to be inside or outside or IR35?

Normally you have the option of umbrella or a Ltd. If you are a Ltd then you can do your own paperwork or pay an accountant to do it.

If you are outside of IR35 and getting a reasonable day rate you will most likely be able to legitimately pay less tax by using a Ltd company.

The paper work for a Ltd isnt terribly hard but is much more complex than a self assessment tax return. Personally I pay an accountant to deal with PAYE, VAT and annual returns etc. They arent the cheapest at £100 a month but they were very experienced with consultants and contractors (and thus IR35) and came highly recommended.