Hi,
I have been offered a job in the New Year as an IT contractor for 6 months. The company that I will be working for wants to employ me as a contractor rather than a regular employee.
So at the end of each month I will give the employer a list of all of the hours I have worked and he will give me a cheque made out to me personally.
How do I handle the revenue side of things ?
Should I setup a limited company and pay myself from that limited company ? Do I need to be VAT registered and make VAT returns ? Do I charge my employer VAT when issueing invoices ?
Should I employ the services of an "umbrella company" ? What are the typical costs for such arrangements?
Is there a third way - can I just take the monthly cheque and then declare all of the income at the end of the year and settle up with revenue then ?
Can I issue invoices as an individual - or do I have to have the limited company in place to do this ?
The company that is employing me as a contractor suggests that the third option is most suitable ?
What is the most tax efficient way? I know lots of different expenses are deductable (will be working from home a lot) - but can this only be done if the limited company option is taken ?
I know I should get prof. advice - but I'm using this to get a broad outline before I go get advice. I also want to ask the right questions of the employer before I accept the job offer.
Many Thanks
(this isn't actually for me - but it is easier than writing "my friend" all the time!)
I have been offered a job in the New Year as an IT contractor for 6 months. The company that I will be working for wants to employ me as a contractor rather than a regular employee.
So at the end of each month I will give the employer a list of all of the hours I have worked and he will give me a cheque made out to me personally.
How do I handle the revenue side of things ?
Should I setup a limited company and pay myself from that limited company ? Do I need to be VAT registered and make VAT returns ? Do I charge my employer VAT when issueing invoices ?
Should I employ the services of an "umbrella company" ? What are the typical costs for such arrangements?
Is there a third way - can I just take the monthly cheque and then declare all of the income at the end of the year and settle up with revenue then ?
Can I issue invoices as an individual - or do I have to have the limited company in place to do this ?
The company that is employing me as a contractor suggests that the third option is most suitable ?
What is the most tax efficient way? I know lots of different expenses are deductable (will be working from home a lot) - but can this only be done if the limited company option is taken ?
I know I should get prof. advice - but I'm using this to get a broad outline before I go get advice. I also want to ask the right questions of the employer before I accept the job offer.
Many Thanks
(this isn't actually for me - but it is easier than writing "my friend" all the time!)