Question for contractors out there

Discussion in 'Bulletin Board ARCHIVE' started by AIRTyke, Nov 29, 2007.

  1. AIR

    AIRTyke New Member

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    Umbrella company or Limited Company?</p>

    I'm assuming Limited Company is more tax efficient (if there are no IR35 gotchas) but more complex to set up and administer? What if you are fresh out of permie land and see a contracting job you want to go for, is it best/easiest to stick yourself under an umbrella company until you get sorted longer term? And is IR35 only a risk if you go down the limited company route?</p>

    Cheers in advance.</p>
     
    AIRTyke, Nov 29, 2007
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  2. Eas

    EastEndRed New Member

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    Limited Co. every time

    Can be set up very easily and quickly for a couple of hundred and much more tax efficient, unless you are going to turnover more than 70k no need to worry bout IR35
     
    EastEndRed, Nov 29, 2007
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  3. AIR

    AIRTyke New Member

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    Ta. nt
     
    AIRTyke, Nov 29, 2007
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  4. BFC Dave

    BFC Dave Well-Known Member

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    ermmm hmmmmm...

    HM Rev and customs are after Umberella Companies and will target them. With regard to the &pound;70K 'threshold' don't know where that comes from. IR35 looks at the nature of each contract that the subbie enters into to determine whether the intermediary tests are satisfied. Having said that the rev have had difficulty making the IR35 rules stick. My advice ? see an accountant who specialises in IT subcontractors and don't be conned by IR35 proof contracts which may not be. I don't touch this type of accountancy work too risky for my likeing.
     
    BFC Dave, Nov 29, 2007
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  5. AIR

    AIRTyke New Member

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    RE: ermmm hmmmmm...

    cheers Dave, useful info.
     
    AIRTyke, Nov 29, 2007
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  6. E.I. Addio

    E.I. Addio Well-Known Member

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    Ltd. Co. wit Quickbooks - a doddle. nt
     
    E.I. Addio, Nov 29, 2007
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  7. E.I. Addio

    E.I. Addio Well-Known Member

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    Like the Donny Darko parody avatar.....nice. nt
     
    E.I. Addio, Nov 29, 2007
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