Different modes of contracting?

[pyke]

PAYE, umbrella companies and limited companies all have different hourly rates, costs and nett rates.

I would appreciate some input and advice from those with experience contracting on which route is the most cost-effective, gives the best nett rates and the least complicated for someone who may be contracting for short-term or long-term and is quite new to tax structures, expenses claims etc? Which ones did you go for?

Thanks for your advice.

[Wanderer]

PAYE, umbrella companies and limited companies all have different hourly rates, costs and nett rates.

I would appreciate some input and advice from those with experience contracting on which route is the most cost-effective, gives the best nett rates and the least complicated for someone who may be contracting for short-term or long-term and is quite new to tax structures, expenses claims etc? Which ones did you go for?

Thanks for your advice.

Always own limited, I've tried the lot, got my fingers burnt all ways but Ltd is best.

Never go for the dodgy schemes, aim for 72-75% net to gross max and the tax man will leave you alone, attempt to go for one of those 80-85% or higher ones and u'll end up at best, insolvent, and at worst, prison. As a director you have certain duties for which the dereliction of you can go to jail.

Ltd is best for tax, but needs lots of input for both you and ur accountant, so it;s not a set it and forget it way.

Ex-contractor, 1992-2009....

[Idea]

someone who may be contracting for short-term or long-term and is quite new to tax structures, expenses claims etc? Which ones did you go for?

Thanks for your advice.

one of the parameters to decide on the format is if its short term or long term and you are trying to generalise.
I would say if you are contracting for short term like 3 months Umberella company would be better....its easier to get in and out

[nm]

Hi,

It would be greatly appreciated if any one can explain how the umberla company works.? The umberlla company will consider us an employee and get our billing from the client ? Please clarify.

[Wanderer]

Hi,

It would be greatly appreciated if any one can explain how the umberla company works.? The umberlla company will consider us an employee and get our billing from the client ? Please clarify.

yeah, but they will take a fair old cut of your earnings.

[Idea]

Umbrella companies are ok for short contract - the nett income is lower than limited company. but limited company requires set-up costs - and closing down the company also involves some costs and you'll need to file your tax returns if you keep your company dormant.

did you try some googling ? all the information is available in accountant websites - with comparisons in nett income etc...

[nm]

Hi,

Am very new to contracting and have offered 320£/day on contracting, i am really interested to know how much i would get on hand at the end of day.?

Lets say i work 20 days in a month and my total earning is 6400. Whats the percentage will umberlla company take out it and do i need to pay NI and tax out of it.? Am sure that tax needs to be paid, however am not sure what's the percentage of Tax and NI.

Am also curious, will the umberlla company will provide salary slips ? This is because, i may require in the future for applying dependant visa.

Thanks for your time and effort !!

[Idea]

as wanderer has mentioned eariler ltd. company is the best option for returns.

phone a umberalla company provider and give details of you contract and expenses and they will be able to give you a projection - free of cost ..ie for the enquiry

yes. umberalla company would calc. (and pay on your behalf)the ni, tax and provide payslips, p45s etc.