Umbrella company's

[kissmyjetpipe]

Hi guys, I need some advice please. I now find my self contracting, having been a XL Airways pilot. I am not to sure if its best to set up my own ltd company or use an umbrella one. Can any old hands at this please give me some advice on the best way to go. Im sure there must be many tax breaks by going on my own, and any way I can stop giving to Gordan Brown has got to be a good thing after all he gives me £60.50 a week for my dole money, not bad for a high rate tax payer!!!!!!.


Thanks for any help you can give me.

[l8starter]

Not an 'old hand at this', infact in the same position as you. However, from what I've been able to glean so far, setting up a limited company is the way to go. You pay for the services of an umbrella company, although as a limited company, you my also want a tax adviser or accountant; so you would have to weigh the costs of one up against the other ?

But the nice people at my local tax office, did tell me that they spend a large amount of their time helping people fill in their tax returns though, and they don't necessarily need to see an accountants spread sheet when it'd just for an individual- just a simple balance book will suffice ! They're certainly worth a visit, website, in person, or by phone- very helpful. (And if you're out of the country for more than 183 days in a tax year, then you needn't bother them at all ;-)) !

I'm sure you'll get lots of good gen from experienced contractors, but thought I'd try and help get the ball rolling 1

L8.

[blablabla]

This is a dangerous mistake made by alot of people......If you set up a Limited Company based in the UK registered at Companies House in Wales then as the owner of this said company or Director it doesnt matter where you choose to be throughout the year and for how many days...your UK Limited Company is always eligable for UK Corperation tax nevermind if the owner or Director chooses to be out of the UK for more than 183 days per year. You cant have money paid through the company and into the Companies bank account and then say ahhh i`m not paying any tax on that as I was out of the UK for more than 183 days this tax year...good luck if you want to try it.
Becoming a UK non resident and leaving the Uk tax system is another story.

[kissmyjetpipe]

Thanks for the replys. I will look in to things. I am not trying to avoid any uk tax, but if I can get below 40% that will be a good thing,I know my NI is a lot less. If any one else has any more ideas or can point me towards a good umbrella company I would be greatful.

[l8starter]

Thanks blablabla, I wasn't very clear-maybe because I'm confused most of the time ! I should have said Ltd Co probably ok if you stay in UK, and at end of post, if out of UK for more than 183 days then don't bother tax man or setting up a Ltd Co, just take the money.

It's good to learn. More please !

L8

[blablabla]

Yes thats right if your going to be based abroad then you dont need a Limited company just open an off-shore bank account somewhere and get paid there whilst you work away. And as your out of the UK then your clear of the UK Tax man.
But yes it is all a confusing subject thats why its best to get advice from an accountant on the subject before.
Happy flying everyone.

[Todders]

Got a little question on that one. If you have been working overseas for a period of time and have savings in an off shore account to bring it into the UK would you then need to pay UK Tax?

[airbirduk]

Not a pilot but a consultant who needed an umbrella company. I used one called Orange & Gold.

I had no problems or issues with them and liked the fact that everything once set up can be done remotely through the web.

[Prophead]

Ive been contracting for 8 years and always used an umbrella company. That was until it was almost outlawed by Gordon Brown a couple of years ago. Now Ltd Co is the way to go.

There are a few companies that will set up and run a Ltd Company for you if you dont want the hassle. Beware thought there are some crooks out there. Remember the old aying 'if it looks too good to be true then it usually is'.

I use a company called Brooksons and have always been happy with them both as an Umbrella company and to run my Ltd Co. as they do now.