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any IT contractors out there?
- Thread starter AshleyC
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I know a few guys that use Parasol, but beware rules changing in April for umbrella companies.
you will not be able to claim much in expenses.
I have been IT contracting for 14 years now, i started with umbrella but soon went ltd.
you will not be able to claim much in expenses.
I have been IT contracting for 14 years now, i started with umbrella but soon went ltd.
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dejongj
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As Mr Bump says, most of the tax efficiencies will go from first of April so take that into account with the rate you agree, biggest one immediately noticeable is travel expenditure.
Even if you do it for a few months, are you sure?, it could be worthwhile setting up a limited company and depending on your rate expectations register for flat rate vat. Pay yourself the minimum and dissolve the company in a few months for the best tax efficient earning. Although don't take my word for that one, you need to speak to an accountant as I think even that part is changing. I thought it was possible to take the assets at 10% but not sure.
It all depends on your objectives for the next few months. Most of the guys/girls that I work with all go through their an Ltd or offshore arrangement.
Even if you do it for a few months, are you sure?, it could be worthwhile setting up a limited company and depending on your rate expectations register for flat rate vat. Pay yourself the minimum and dissolve the company in a few months for the best tax efficient earning. Although don't take my word for that one, you need to speak to an accountant as I think even that part is changing. I thought it was possible to take the assets at 10% but not sure.
It all depends on your objectives for the next few months. Most of the guys/girls that I work with all go through their an Ltd or offshore arrangement.
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AshleyC
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ok thanks, its all just a bit confusing tbh which is why i usually just go umbrella. Ive had contracts in the past in between permy roles and redundancys so i just prefer the simplicity. You still make more than PAYE but not as much as a ltd i think. Travel expenses wont amount to much anyway as the job is 10 minutes away. Im pretty sure they will extend though so could still be worth finding an accountant who can explain things in english 
*edit* although saying that, just looking at Parasol's site, their Ltd company option is showing aroung 1300 a month more money. So i think i will give them a ring tomorrow!
*edit* although saying that, just looking at Parasol's site, their Ltd company option is showing aroung 1300 a month more money. So i think i will give them a ring tomorrow!
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