[TAPorSNAP]

Just landed my first IT contract in London and need to set up my limited company.
Will only be working for 3-4 months at this stage. Is it even worth the effort ?

Which providers are good to go with in terms of setting all this up.
Im not an accountant or expert at tax law, so the simpler the better please.

[MikeX]

[TAPorSNAP]

[rayski]

Hi,

I am an IT contractor and have worked with umbrella companys and now I have a ltd company.

It depends what you want, the money you are talking about earning is good and bearing in mind a reasonable account will cost you about £600.00 for doing your annual return and your tax return. If you find a good accountant they will set a ltd company for you, my one cost about £120.00.

Unfortunately the government has just stopped IT contractors using PSC companies and have basically ruined the contracting market for us all. What you should think about is if you are only contracting for a short period then why not use an umbrella company, they are strictly PAYE but all of your tax, ni and emploers ni is taken care of and on the money your talking about it will be heavey tax loss but the tax man wont come back and haunt you.

If you want any more help or advice please feel free to ask.

Ray

[TAPorSNAP]

Yeah ended up going the Umbrella Company route.
Spoke to 2 accountants who said its waste of time/money setting up a limited company if Im only going to do a once off 3 month contract.

If I decide to stay longer, and work for a year or so, then it is worth the effort of setting up the limited company.

Considering my situation, am I eligible to get all the tax and NI refunded at the end of the financial year ?

[brittney]

If you really interested in online company formation then you can take the help of my favorite legal advisor http://www.companieshouseonline.com , offering online company formation for limited company , offshore company formation to establish a company with the best legal services. I always prefer this in company formation matter.

[JeremyLondon]

Just thought I'd share my experience, even if your first contract is short the fact is once you have the Limited company set up to work from other companies will take you far more seriously. Before I set up my company I was struggling to get contracts, since incorporation I've had three times as much work. Plus now you no longer need the company secretary so its win-win all the way.

I registered my company through an online agent who set the whole thing up for just under £35.00 - you can find out more about company formation here www.westone-business.com/formations.html

I would recommend this unless you are a lawyer or have large pockets! Companies House unfortunately don't seem too keen to advise you on filling out forms etc so using one of their online agents is the best bet. With an agent you get your certificate next day, plus they can help with business bank account introductions etc.

[Cameron Wallace]

there are heaps of options. Running your own limited company can be pretty arduous work. Why not google something like taxation contractor or something to that effect. If you are going to just work for 4 months as a contractor then setting up a Limited Company would be far too much like hard work. You have to know how to run a payroll, lodge Companies House and HMRC Corporation Tax Returns, dividends, possible VAT. It is a bit of an admin nightmare.

[tofftrader]

This is probably the most frequently asked question we see on our site - alongside the tax differences between the two options, you also need to consider whether or not you want a hassle-free existence, and whether or not your are caught by

[jonin60seconds]

Hey Tofftrader. While we appreciate the good advice you give out on this forum, this is not a place for advertising. I have removed the link from you signature and I would appreciate you not constantly linking to your site from this forum as this is against terms.

[tofftrader]

No problem at all jonin60. Would it be possible for someone to fix the links in my last post in the meantime (or remove them), as my understanding of the 'BBCode' seems to be less impressive than that of limited company legislation. Despite saying it is possible in the FAQ, it seems that you can't edit your own posts in this forum.

[jonin60seconds]

Done!