Contract opportunity

[Too Late]

Hi

I have been offered a contract role paying a healthy day rate. I am now stuck with how I work out my tax and NI payments.

Anyone able to point me in the right direction?

Thanks
N

[MagicalTrevor]

Contractorcalculator.co.uk

Pay attention to whether you're inside or outside of IR35, ideally you want to be outside of it.

[98elise]

Too Late said:

Hi

I have been offered a contract role paying a healthy day rate. I am now stuck with how I work out my tax and NI payments.

Anyone able to point me in the right direction?

Thanks
N

Get an accountant. Assuming you will be Ltd, you will need to deal with VAT, corporation tax, IR35, income tax, NI, payroll, dividends etc.

If you fk this up you will need to bend over for the tax man!

[Too Late]

This seems a lot harder than i originally thought.
I was under the impression i would be earning say for example £250 a day with it being a 3 month contract ready to role on to a 6 month contract, and i was expecting to invoice the said company for my work. I have now been told to either work under an umbrella company or become a Ltd company.

Looking at contractoruk at the moment.

I know its been said to get into a Ltd, but what are the pros and cons of going Ltd or working under an umbrella company?

Thanks
N

[MagicalTrevor]

It's not THAT hard when you do it, no more so than doing stupid appraisals every year!!

You'll take home less with an umbrella company but there'll be less hassle. If you're thinking of doing this short term then umbrellas are often a good option to consider though. Make sure you find a company that's reputable and you trust.

[Mattt]

You need an accountant, now.

[jonny996]

Too Late said:

This seems a lot harder than i originally thought.
I was under the impression i would be earning say for example £250 a day with it being a 3 month contract ready to role on to a 6 month contract, and i was expecting to invoice the said company for my work. I have now been told to either work under an umbrella company or become a Ltd company.

Looking at contractoruk at the moment.

I know its been said to get into a Ltd, but what are the pros and cons of going Ltd or working under an umbrella company?

Thanks
N

If you think that is hard to do, are you sure you want to contract? There is admin to do over and above the actual work you do, it is not money for nothing. Also I am assuming you will be contracted to a 40 hr week compared to 35 for the perms.
The money is good, but you do have to work harder for it

[98elise]

Too Late said:

This seems a lot harder than i originally thought.
I was under the impression i would be earning say for example £250 a day with it being a 3 month contract ready to role on to a 6 month contract, and i was expecting to invoice the said company for my work. I have now been told to either work under an umbrella company or become a Ltd company.

Looking at contractoruk at the moment.

I know its been said to get into a Ltd, but what are the pros and cons of going Ltd or working under an umbrella company?

Thanks
N

Its not difficult once you get an accountant. They will deal with all the tax implications, forming your company, registering for VAT etc. Beyond that you will need insurances, but this is no harder than taking out any other insurance.

You will need to do the books but again your accountant will have something set up for you. Mine is just filling in a spreadsheet. My accoutant costs me about £120 per month.

[Mattt]

That sounds a lot to me, unless you're more than a one man limited contractor?

[98elise]

Mattt said:

That sounds a lot to me, unless you're more than a one man limited contractor?

No I'm a one man Ltd contractor. Its SJD who are quite a big firm, so I'm probably paying over the odds. They were recommended to me when I first started, and I've had no issues so I've not been inclined to look around.

[Too Late]

So i have gone with Giant as a safe bet, this gives me time to see the market and work out whats best for me.

Network one look good..... but risky for my first time...