AK350Z Posted October 24, 2008 Share Posted October 24, 2008 Looks like i've got a job offer that i applied for through the agency Capita. As i've head before, you can get a few £ an hour more if you do the Ltd. company thing but i've never had to do it before. Any recommended Umbrella Co's or other tips and tricks would be most appreciated! Capita have sent me a list of approved companie that offer umbrella services (Paystream, Giant, etc.) Quote Link to comment Share on other sites More sharing options...
Stew Posted October 25, 2008 Share Posted October 25, 2008 I guess most will be the same roughly but you need to make sure you can change the company name if you want to etc. I believe the cost to set up a Limited company is higher but then so is the protection..... Quote Link to comment Share on other sites More sharing options...
H5 Posted October 25, 2008 Share Posted October 25, 2008 A Ltd company also attracts account filing requirements and other 'Comapny Secretarial' expenses. Will be worth checking how much you are likely to gain vs. how much you will shell out and how much hassle it will be. Quote Link to comment Share on other sites More sharing options...
Stew Posted October 25, 2008 Share Posted October 25, 2008 Yes. Accounts have to be published with a limited company. My old man can often be seen perusing sets of accounts of various competitors / creditors / future clients when I venture round to my folks! Quote Link to comment Share on other sites More sharing options...
AK350Z Posted October 25, 2008 Author Share Posted October 25, 2008 Think i'll just be signing up to one of those umbrella services, they do all the paperwork and NI stuff, and i just have to submit timesheets and expenses. Seem to be about 20-25 quid a week i think. Quote Link to comment Share on other sites More sharing options...
manc350z Posted October 25, 2008 Share Posted October 25, 2008 i was a contractor for almost 15 years.. i set up as a ltd company with VAT registration.. if you have never been a contractor you should also consider these little gems.... 1) - Company setup costs approx - 200gbp 2) - Geting first business bank acct - 4hrs effort 3) - Monthly bank account maintenance cost - £7.50 (but more than covered by current account interest once i got rolling) 4) - Giving all my stuff to accountant and filling in forms / raising payments to the inland rev, vat etc - 3hrs per month. 5) - Acountancy costs - £90 per month. + one offs like companies house filing charges + year end accounts preparation, and per hour charges to prvide assistance when i got audited by the HMRC... (10hrs charges.. 1k total.. not bad in 15years) 6) - Own 3rd party liability insurances / professional indemnities - £200 per month. 7) - Private medical insurance - £100 per month. 8) - Critical injury, sickness + life insurance - £100 per month 9) - Cost of own training per month (averaged from 15yrs training) - £150 per month. 10) - Company directors Pension Scheme - £690 per month (including tx break) If you go through an umbrella company you obviously shouldn't have to worry about items 1 through 5 but you should check they cover item 6 (both elements and to what level) and cover yourself for item 7 - 10. (10 would be a standard private pension) You need to check if the umbrella company indemnifies you against HMRC bending you over a barrell with regards to IR35, are you basically being an employee (won't be a problem) or a non executive director.. if you are a non executive director you need to be clear that if HMRC go after the company you are exempt from financial penalties..... I think umbrella companies are now more popular.. and more honest.. early ones were set up as potential scams to avoid HMRC tax ruling IR35.. but ways they found to avoid that the HMRC bods came up with a new one.. pre paid tax against the next 12mth profits and the addition of National Insurance + enhanced tax rates against directors dividends.. also increased penalties for abuse of the good old directors loan accounts . I always used to view umbrella companies with caution as i would prefer to be hung for my own (or my accountants) crimes as opposed to those committed by someone else.. if you get my drift... I was going to say i hope this helps.... but actually i don't think it will !!!! basically it will be easier to go the umbrella route ! Capita are a pretty decent agency... if they are approved umbrella's then probably ok Quote Link to comment Share on other sites More sharing options...
AK350Z Posted October 25, 2008 Author Share Posted October 25, 2008 Cheers mate, good info if it becomes a long term thing, but umbrellas looking the way to go for now, and they seem to be quite reasonable price wise. Quote Link to comment Share on other sites More sharing options...
H5 Posted October 26, 2008 Share Posted October 26, 2008 There will be a cross over where you will certainly need more specific accounting advice. Just don't leave it with an umbrella if you grow and are dealing with several hundred £k, then it becomes more fun and games. Capital allowances, tax rules etc. all have much bigger impacts on your money then. Quote Link to comment Share on other sites More sharing options...
stanski Posted October 26, 2008 Share Posted October 26, 2008 If its your first contract go Umbrella company no question- make sure that you can fill out yout timesheets, expenses etc online - makes life a lot easier! Then you need a payroll company - they can be part of the umbrella set up or like mine - seperate - they will advise how much you can claim for travel expenses etc etc etc but to be honest after trying an umbrella company a few years ago and knowing what I know now - if I was to contract again I would go private company. You will get far more money back as a private Ltd company? You can buy them off the shelf pre registered from Companies House http://www.companieshouse.gov.uk/infoAn ... List.shtml Think they used to be £100 which in the scheme of things is peanuts but your stuck with a name that may not suit your business needs?? Anyway have a look at the weblink above - plenty of advice on t'internet. A lot of good advice and info from David there (manc350z) I take it things did'nt go to well with your verdict then mate? Quote Link to comment Share on other sites More sharing options...
AK350Z Posted October 26, 2008 Author Share Posted October 26, 2008 Hasn't happened yet, probably a few more weeks. I can't afford to stand still though so i'm pressing on with another job! Quote Link to comment Share on other sites More sharing options...
stanski Posted October 26, 2008 Share Posted October 26, 2008 Probably the best thing to do - hope you get something sorted soon? Still nothing on the horizon for me but remaining positive, something will turn up soon -otherwise its back to contracting for me too! Quote Link to comment Share on other sites More sharing options...
AK350Z Posted October 27, 2008 Author Share Posted October 27, 2008 Maybe you should become a B&B inspector? Quote Link to comment Share on other sites More sharing options...
stanski Posted October 27, 2008 Share Posted October 27, 2008 Maybe you should become a B&B inspector? I could do that - but I would end up the size of a barrell sampling those breakfasts!! Quote Link to comment Share on other sites More sharing options...
Stew Posted October 27, 2008 Share Posted October 27, 2008 A tour guide writer! Quote Link to comment Share on other sites More sharing options...
stanski Posted October 27, 2008 Share Posted October 27, 2008 A tour guide writer! gotta be better than IT!!! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.