Consulting / Contracting

waspy88 · 23 Apr 2016 at 07:53

Hello Guys.

I have been a PAYE employee all my life. But as of next month I will be switching to a consulting gig and a long term contracting role. However.. the daily rates are going to mess up my tax quite badly. The agency I will be contracting with said they will suggest an Limited Company or an Umbrella Company.. :confused:

Do any of you do this regularly, and should I be aware of any serious pitfalls. I am meeting an accountant next week too, but completely new to this. So any good resources or tips would be much appreciated.

Thanks guys!

waspy88 · 23 Apr 2016 at 08:43

When you have a limited company do you have to do a fair bit of paper work yourself, like tax returns, NI and other bits and bobs?

waspy88 · 23 Apr 2016 at 16:09

Thanks for the heads up guys.
1 contract is for 8 months, whilst the other is intermittent / indefinite (But more sporadic)
So for this purpose the Ltd company sounds like my best option.

A bit nervous but sounds like its a regular thing people do. Thanks for the heads up

waspy88 · 29 Apr 2016 at 18:42

Company set up.. so what's the deal with bank accounts. Just had a look at Lloyds bank account and its showing they charge for cash in and out! cheeky sods. Is this tax deductible

My accountant has put a lot of my fears to bed thankfully. Thanks for the tip guys !