Umbrella or LTD?

[Masteranto]

How is everyone. Its has been a while since i have been on the forum as i've been job hunting and have started temporary contract for genetic software solutions.

They are based in Milton Keynes and have told me that i either have to be a LTD company or join an umbrella company to get my wages.

My question for you guys is "which would be the best option for me?" I'm 19 years old and am not the greatest at math so i was thinking of going for an umbrella company.

Also have any of you guys had any experiance with umbrella companies or can you suggest a good one for me?

Thanks for reading,


Anthony.

 

[Kent Accountant]

An accountancy firm specialising in this area is SJD Accountancy. They are definitely worth a call w w w . sjdaccountancy . c o m

Hope this helps

Bob

 

[lawspeed]

This is a very wide-ranging question and I would strongly recommend some background reading here: http://forums.contractoruk.com/thread7487.html

(Incidentally the instigator of the initial posting on the thread is SJD)

When you are just getting into contracting it can be helpful to sign up with an umbrella whilst you are finding your feet but your own limited company would give you control and usually results in higher 'in the pocket earnings', particularly on engagements that are outside IR35 (http://www.lawspeed.com/providers/ir35.aspx)

If you are engaged via the recruiter Generic Software Solutions (rather than Genetic) then you may find they are using Lawspeed contracts, designed to reflect arrangements that are outside IR35, if your circumstances permit.

 

[Alpha]

As Lawspeed says you would probably be better off in your pocket by starting your own limited company even after accountants fees!

All of my contractor clients run their own limited company(well actually we run them on their behalf and they just do the invoicing!)

You would have greater control over your business but if you do decide to take this route it would be advisable to join a group such as PCG which would provide you with insurance against IR investigations or cover yourself with insurance from companies such as QDos.

It would also be highly advisable to ensure that your working practices and contract terms are carefully laid out (Which is something that lawspeed will be able to help you with.)