IT Contractors: Limited Company or Umbrella

[trendie]

Of the many IT types out there who are freelance, ( contractors ), I would be interested to know how many run their own limited companies, with all the headache of paperwork, VAT etc, and how many prefer to work under an Umbrella company.

It is coming up to the financial year-end, and I am wondering if transferring to an umbrella company may be the easier and hassle-free route to continue my work.

Any experiences, views, for such things ?

 

[adrianallen99]

I tried both an unbrella company and a limited company. Using an umbrella company was by far the easiest. If you are going to use an umbrella company check out the costs associated with it, what they offer can vary quite a lot. I use to use 360 group (they used another name as well, but I cant remember what it was). They were really good and they always paid me on time, even if they were still waiting to be paid. Also it made it easy when applying for mortgages and loans as I had payslips from another company (instead of my own limited company) and when I changed contracts I was still effectively working for the same company.

 

[trendie]

thanks for your reply, adrianallen99.

will look up 360-group.
was also looking at giant-group and prosperity4 as comparisons.
( I suppose it all depends on how they cope with IR-35 )

 

[KIG]

Hi Trendie.

I was an IT contractor twice. 1st time back in the 80's for 4 years and then again 1997 - 2003. Both using a Ltd company. I preferred the independance that Ltd gave me with flexibility of income etc. Although IR35 is a big consideration these days. One minor benefit that I knew nothing about was when I ceased trading (by choice) my accountant advised me that all funds left in the company A/C could be withdrawn with no further tax applied which was very nice. Again your choice but I would always prefer controlling own destiny and the paperwork was never difficult.

 

[trendie]

hi KIG,

thanks for your info.
IR-35 - this is biggest hassle, as well as Indemnity Insurance etc, etc.

have spoken to 360-group ( only 20 minutes ago )
they have IR dispensation, so you can claim around £25 a day costs, ( before tax ). in addition to mileage allowances, etc. Employer and Indemnity Insurance as part of package.
cost is £30 pw. ( around £1,200 a year for 40-weeks )
overall, the savings of ltd co is becoming less advantageous these days (sp).

Overall, will still be better off than "normal" employed people.
Just want to cut out the crappy paperwork, VAT, Annual Returns.
Also, removes the IR-35 uncertainty, while still getting most of my own money back to me.

just looking for any other respected umbrellas to look at.