I am seriously considering going contracting for a couple of years, now i know a few of you guys here are contractors or have been contractors...can you please tell me whether its better to go thru an Umbrella Company or to set up my own company, which one will give me more 'take home' cash. ?

What are the pros/cons of either ?

THe Umbrella companies i have been looking at are http://www.greenlantern35.co.uk

and

https://www.prosperity4.com

Thanks

 

Unless the rules have changed, the following generally applies:

The limited company route will give you more take home pay, but will require some accounting work from you. If you get an accountant to do it all, some of the gains are eaten into.

Umbrella companies will give you less take home pay, but are excellent if you are lazy or hate doing any accounting.

 

Cheers, so how do i go about setting up my own company ? Is there a website that details what i need and dont need to do ?

Cheers

 

can buy one here http://www.ukplc.net/ and then you must get yourself an accountant, ask friends, family if they can recommend one ideally and one that is local to you.

Cheers

Gary

 

I would reccommend giving Brooksons a call, 0845 0581200, and get an estimate from them before setting up on your own, unless you really like doing paperwork and accounts!
I've tried both routes and found Brooksons to be far and away the best option for me. Works out cheaper as well.

Website is www.brookson.co.uk

Mark

 

Did your "Umbrella Company" manufacture a T-Virus ?

 

I'd second all of this, although I'd get an accountant *before* setting up the company.

The main difference between an umbrella company and the company route is in the flexibility you have for creative accounting - to keep as much money as possible away from the tax man. I looked at the following company http://www.jsagroup.co.uk; they do both, but seem to be more biased to umbrella companies.

I went with the following company: http://www.justcontracting.com, on the recommendation of a friend - the big benefit for me was their online system - working out of the country I can submit all my accounting online. They also absorb the cost of setting up the company, and did all the work for me. I've no complaints so far. They're perhaps not the cheapest at 150/month, but they've easily saved their fee in tax efficiency. That's also a flat fee, no matter how much you abuse them.

Feel free to drop me a pm and I'll discuss in more detail if you wish.

 

I agree with mark1234 about getting an accountant before setting up the company.

If you go to a contractor specialist accountant, they will have some off-the-shelf companies to choose from. Get hold of a copy of Freelance Informer for a list of contractor accountants.

Personally, I would steer clear of JSA.