I am going on a contract, should I start my own business?
HappyUser
Posts: 301 Forumite
Hello!
I am going on a three month rolling contract with £170pd.
There is an umbrella company available. How much would I save if I start my own business, minus the costs for the accountant etc?
Thanks!
I am going on a three month rolling contract with £170pd.
There is an umbrella company available. How much would I save if I start my own business, minus the costs for the accountant etc?
Thanks!
0
Comments
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By 'starting your own business' presumably you mean setting up a limited company ?
How long do you envisage the contract lasting ?0 -
How much will you spend on accountancy costs etc?0
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The contract may last 1 year. I don't know how much the accounting costs would be.0
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I went Ltd - if I did it again I'd go with an umbrella as it's "easy in, easy out"... Ltd works fine if you see yourself as "running a business" and know how you can use the status to any advantage and have plans to be a Ltd for years to come.
If you're probably dipping in and out and aren't really sure where this is going to go .... try an umbrella for a year or so until you're sure and have decided.0 -
Are the taxes the same for both choices?
If I have a second job, which would work best?0 -
As a limited company contractor for many years, I'd say choose a reputable umbrella company. Your stated day rate is low and so probably not worth the time and expense of an Ltd and all the costs involved.
The tax situation with an umbrella will be easier for you to follow. Ltd structure is definitely more complex. Which is more advantageous long-term depends on your personal circumstances and goals.
I'd suggest going to Contractor UK website and have a read of the FAQs if you have more questions.0 -
Can you suggest me the best umbrella company then?0
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Fulton Umbrellas are excellent.0
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Is this accurate? It shows that umbrellas are better than accountants:
https://www.itcontracting.com/calculators/limited-umbrella-tax-calculator/0
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