Contract work in Civ Div

Discussion in 'Royal Signals' started by Sleeping_Badger, Aug 12, 2007.

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  1. I am getting out and I am looking at doing some contract work in the UK. I have heard the best thing to do is set up your own Ltd company but I could really do with some advice on this. Also does anyone know of any good accountants that are specialists in this sort of thing?
  2. Cow

    Cow LE

    I used an Umbrella company when I was contracting.

    They sorted all my tax and expenses out for a weekly charge. My mate uses an accountant and has no problems but doesn't get his expenses as quick as I did.
  3. Gremlin

    Gremlin LE Good Egg (charities)

  4. The law changed on the 1st April. Giant don't do that stuff anymore.

    I had to form my own company, and even though I used JSA, it is a major pain in the arrse and will take a couple of months to sort out.

    PM me if you want some advice.
  5. It depends on the type of work you do and where

    Ltd companies have uses as do umbrella companies, thankfully my wife is a charted account and frigs the books to death and the tax man gets parniod and gives me tonnes of cash back. However she is a slippery sod and is very clever with this sort of stuff.

    Drop me aline if you want and I will ask her which would be best if your contracting short term long term (UK or abroad)
  6. try atlantic umbrella for an umbrella company, if you do pm me for my name so i get fifty quid for recommending you, will send u a pint in the post
  7. If you're doing this for less a year use an umbrella company but if longer set up a Ltd company.

    I use an accountant who specialises in IT contractors and it costs me £50 a month. For that he sorts out the minimum wage PAYE I can pay myself and then the dividends. Dividends are taxed at 10% (i think) and then you get clobbered for 25% tax above £35k. He fills out all the complicated tax forms for me and then sends them back with a "sign here" and the amount.

    I invoice the recruitment agency who in turn invoice big blue and the money always gets into my company account quickly.

    Keep receipts for everything.
  8. Tax is 40% above £35,500 - tax is 22% below this.
  9. I use Contractor Umbrella ( who're pretty switched on. If you want to ring them, I'd recommend talking to Russell on 01206 761326.
  10. I am in a 9 month contract and decided to go through ***parasol it***.

    Good company but intent to use my Ltd company on completion of this contract. Apparently you save, or should i say, make more money.

    It only takes a day or two to set it up.
  11. This is only under IR35 or perm jobs. If you go umbrella or ltd you pay 25% corporation tax. If done correctly by an accountant you should be looking at keeping upwards of 85% of the money you earn.
  12. engr172

    engr172 Old-Salt Book Reviewer

    Do NOT use parasol. Total arrse, believe me. Set up a Ltd company mate. Much easier in the long run. You want any tips PM me.
  13. Could be looking at this myself one of the jobs I might be able to take on is down south would I be able to claim back fuel costs etc?
  14. I go through Parasol at the moment but after a pm from engr and his comment I will be opening up my own Ltd Company very shortly.

    I travel from Wales to Luton every Sunday and back on Friday - 270 each way. Also 14 miles each way Monday to Friday.

    To give guidance to you this is what I Pay in tax:

    8 jouneys x 270 miles a month (free at 40 a mile)
    20 journeys x 14 travel to work (free at 40 a mile)
    16 journeys x 14 travel from work(free at 40 a mile)
    1 x 350 lodgings (free)
    4 x 5 bridge toll (free)
    work over 10 hours - inc travel (15 a day)
    work over 5 hours - inc travel (5 a day)

    The above works out at approx £1850 tax/nat ins free each month. The rest is, at the moment:

    tax 22%
    emplyoyers nat ins 12%
    employees nat ins 11%

    However, as engr informed me. You will make a lot more if you go ltd. Im just waiting to see if I intend to continue with contract work after my first eight monhts contract. Its just easier to let someone else to do it for you to start with