Working as a contractor (UK)
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Thanks for the advice. Anna you have been helpful :rose:
Anytime. :)
Anna :rose: Having a bad bug day? Tech Blog | Anna's Place | Tears and Laughter "If mushy peas are the food of the devil, the stotty cake is the frisbee of God"
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I agree with your points the last couple of years I usually make sure at the very least the contract I sign has all the above clauses but know that even that is not water tight. I usually have short term contracts 3-6 months so I would think I am less prone to scrutiny.
That probably helps, though I wouldn't be surprised put any target beyond HMRC at the moment based on their current conduct. The changes to the employer annual return in 2007 are what finally convinced us to move into full time product development. The "Are you a service company?" question on the P35 is effectively asking you to declare that you are a valid target for an IR35 investigation.
Anna :rose: Having a bad bug day? Tech Blog | Anna's Place | Tears and Laughter "If mushy peas are the food of the devil, the stotty cake is the frisbee of God"
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I have been working as a full time employee so far. I am planning to work as a contractor now. Which route would you advice - going with an umbrella company or register a Ltd company + hire an accountant? Do you have any recommendation for an umbrella company and/or accountant? Cheers
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Any ideas brewing in your mind yet? :-D
Ideas and brewing are currently mutually exclusive. :suss:
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tufkap, thank you for the recommendation. I did visit their site and they seem reasonable to work with considering you have a good experience. To get started, all I need to do is register with them and find a contract to work on, is that correct? Or do I need to know any specific details? modified on Monday, July 13, 2009 1:21 PM I see Parasol has association with PCG.
modified on Monday, July 13, 2009 1:21 PM
Yes, that is correct. It took a few minutes to register and then I had to send in certified copies of some identity documents. The contract was uploaded to my account after that and I just had to log in and accept it. Doing my timesheets and submitting business expenses were also fairly painless.
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Thanks Digital Man, your articles are helpful. In fact I did read them few months back when I started thinking about contracting. I see that the article talks more about a limited company approach and hiring an accountant. Please correct me if I have read it wrong. As of now, I have thought of starting with an Umbrella company like (Parasol Group[^]) and from there I will move onto a limited company. Any information I you may have about working with Umbrella company is much appreciated. BTW I'll vote for your article :rose:
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If you haven't already done so, check out http://www.contractoruk.com/[^] It has loads of useful information. I've used a limited company and umbrella companies. I always found umbrella companies to be a pain in the arse. You only speak to idiots on the end of a phone who have no real idea what you're asking them - they're normally not proper accountants themselves at the end of the day. I found that a ltd. company and a decent accountant to be a much better way of doing things. Because at the end of the day, you know where your money is going and why. It gives you much more flexibility. :)
"...great scott!" Dilbert: Aren't all meetings like this... Richard Dawkins: "What if you're wrong?"
Thanks. I have already seen ContractorUK.com site and it has very useful information. Finding a good accountant will take time and hence I would start with a good umbrella companies. From Contractoruk site I read that it is easier to go from umbrella companies to a limited company. May I ask which umbrella company have you used in the past?
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Yes, that is correct. It took a few minutes to register and then I had to send in certified copies of some identity documents. The contract was uploaded to my account after that and I just had to log in and accept it. Doing my timesheets and submitting business expenses were also fairly painless.
That's smooth. Parasol being a bigger player, I would expect a good service and less hassle. I have a question, I see PCG also offering umbrella service in partnership with Parasol. So should I go ahead joining Parasol directly or via PCG? I see that via PCG it has additional fee with PCG services added to Parasol. ( I forgot to vote 5 to your answer and I'll do so now, you have been helpful)
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Thanks. I have already seen ContractorUK.com site and it has very useful information. Finding a good accountant will take time and hence I would start with a good umbrella companies. From Contractoruk site I read that it is easier to go from umbrella companies to a limited company. May I ask which umbrella company have you used in the past?
I've used Brookson, and wasn't too impressed, but that was a long time ago now - they may have got better (I don't want to get sued!) But, even picking an umbrella company can take time. I *have* to use an umbrella company at the moment as I'm working abroad, as understanding the tax system in the UK is bad enough, but in a country where you can't speak the lingo is almost impossible! Keep looking into the Limited company solution, and try to implement it as soon as you can - I made more money with a Ltd. than using umbrella company - even if they tell you its pretty much the same. :thumbsup:
"...great scott!" Dilbert: Aren't all meetings like this... Richard Dawkins: "What if you're wrong?"
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That's smooth. Parasol being a bigger player, I would expect a good service and less hassle. I have a question, I see PCG also offering umbrella service in partnership with Parasol. So should I go ahead joining Parasol directly or via PCG? I see that via PCG it has additional fee with PCG services added to Parasol. ( I forgot to vote 5 to your answer and I'll do so now, you have been helpful)
You are welcome, nativebyte. I did not look into the PCG option. When I signed up for Parasol, I was in a hurry and this is a short-term contract. So I just picked the option recommended by my clients who I've worked with before. Also the Parasol service charge was factored into my daily rate, so I did not look around for better options. Sorry I can't be of more help to you.