Considering FTC work for the first time

Mackle

Good evening,

Having been made redundant back in September, I'm considering an FTC position.

I've never worked as a contractor so I'm totally clueless when it comes to things, but I'm under the impression that if the contract pays a salary that is in the 40% tax bracket, that it's more efficient to setup a sole trader / limited company rather than use an umbrella?

And if I was to setup a limited company, if the FTC position was less than 24 months (so 6 or 12 months), is that still termed as a temporary workplace so accommodation or travel expenses can be claimed? Or despite the limited company being registered to my address, under a 6-12 month FTC 100 miles away from home is the end client's address still legally the base of work address?

Also, my current vehicle is a 20 year old 2.3 Turbo Swedish tank that is averaging 21MPG. As this would be horrifically expense for a commute, would I be able to use the limited company to get a PHEV vehicle (one eligible for 7% BIK if it were termed as a company car) or is it more efficient to sort out a car as a normal private buyer?


Sorry for all the questions. I've been PAYE for 20 years before this redundancy and never filled out a tax return so contracting is a very strange new world.