I dont have much choice really. I didnt want to go through the third party (umbrella ) really as im coughing up money for someone to make a couple of payments every week. Its just that I wasnt sure how complicated it all was. I will see the accountant though and see what he says and what he advises for the best.

Quote Karlos="Karlos"I dont have much choice really. I didnt want to go through the third party (umbrella ) really as im coughing up money for someone to make a couple of payments every week. Its just that I wasnt sure how complicated it all was. I will see the accountant though and see what he says and what he advises for the best.'" An umbrella company will (or should) save you their fee every month, they will keep you 100% compliant with current legislation and do all your taxes for you, all you do is fill in the expenses forms and away you go. Piece of cake to set up and they deal with invoicing and contract details for you. As far as HMRC goes you appear to be working for the umbrella company and no yourself. I use www.orangegenie.com they deal with people in your situation everyday, I found them to be top class, in fact they chased one debtor all the way to the small claims court for me.

Quote Karlos="Karlos"I dont have much choice really. I didnt want to go through the third party (umbrella ) really as im coughing up money for someone to make a couple of payments every week. Its just that I wasnt sure how complicated it all was. I will see the accountant though and see what he says and what he advises for the best.'" An umbrella company will (or should) save you their fee every month, they will keep you 100% compliant with current legislation and do all your taxes for you, all you do is fill in the expenses forms and away you go. Piece of cake to set up and they deal with invoicing and contract details for you. As far as HMRC goes you appear to be working for the umbrella company and no yourself. I use www.orangegenie.com they deal with people in your situation everyday, I found them to be top class, in fact they chased one debtor all the way to the small claims court for me.

When was the last time you worked as a contractor?

Can't add anything to the discussion but Congratulations on the new job mate. See you at the Keepmoat next season (if not before).

I am always sceptical about these "contracts" that these organisations produce. Standard contracts will invariably fail if challenged robustly by HMRC.

I'll ask you again, when was the last time you were a contractor?

Never.

But, I'll ask you a question - when did you last study the law in this area?

That is what I pay an Umbrella company for, it is the only way to work if you fall under the IR35 directive, a directive which is the clearest bit of legislation HMRC have ever devised BTW.

It is quite clear if you fall into one of the IR35 list of employment, if you do you can either work as a contractor under PAYE on a short term contract or as a contractor working for an agency which is what an umbrella company is, you can not be self employed and many companies will no longer deal with self owned limited companies. There is very little grey in this area and very little that HMRC will pick apart if you use a reputable company.

Quote Big Graeme="Big Graeme"An umbrella company will (or should) save you their fee every month, they will keep you 100% compliant with current legislation and do all your taxes for you, all you do is fill in the expenses forms and away you go. Piece of cake to set up and they deal with invoicing and contract details for you. As far as HMRC goes you appear to be working for the umbrella company and no yourself. I use www.orangegenie.com they deal with people in your situation everyday, I found them to be top class, in fact they chased one debtor all the way to the small claims court for me.'" Thanks for the tips BG. Like i say im going to speak to quite a few different people (accountants and umbrellas) to see what is best. Just one other question. I saw on one site a write up on the pros and cons of umbrellas , sole tradering, etc and a couple of them said "not advisable if you will earn over 35k". Why is this?

Quote Big Graeme="Big Graeme"An umbrella company will (or should) save you their fee every month, they will keep you 100% compliant with current legislation and do all your taxes for you, all you do is fill in the expenses forms and away you go. Piece of cake to set up and they deal with invoicing and contract details for you. As far as HMRC goes you appear to be working for the umbrella company and no yourself. I use www.orangegenie.com they deal with people in your situation everyday, I found them to be top class, in fact they chased one debtor all the way to the small claims court for me.'" Thanks for the tips BG. Like i say im going to speak to quite a few different people (accountants and umbrellas) to see what is best. Just one other question. I saw on one site a write up on the pros and cons of umbrellas , sole tradering, etc and a couple of them said "not advisable if you will earn over 35k". Why is this?

Cheers Gary thanks for that and see you soon mate!

You need to find out if your job role comes within the scope of IR35, if it does then umbrella or PAYE agency is the only thing you can do regardless of what you earn, if it falls outside or IR35 then sole trader limited company can and usually does work out more tax efficient.

An umbrella company is not the only way to work in respect of earnings from relationships caught by IR35. You can operate through your own company.

"It is quite clear if you fall into one of the IR35 list of employment" - what list is that? There is no specific list. It comes down to the specifics of the relationship between contractor and "client."