being new to agency work,im slowly trying to pick my way through the ins and outs of the options available to me. ive just started being paid through an umbrella co who sort everthing out for 5% of my earnings…so if i earn around £20,000,they skim £1000 pound off.
my agency say, that me being self employed on my own(without the use of the brolly co)is not an option,and the only other way round it is to form my own limited company.
to do this i must open a business bank account,which presumably attracts a monthly fee,and also i would need business insurance.ive just got a quote for this insurance and it comes out at £180 for £2,000,000 pounds worth of liability. it looks on paper like the limited company option is best,but would the financial benefits out weigh the extra burden :question: i suppose the more you earn then the more viable the ltd company option becomes.i was talking to a bloke the other day who seemed to have his head screwed on,and he swore by the ltd co route,however he admitted that he actively chased work and usually earned "just under £40,000". ive never actively chased anything in my life,so 40 hours a week is my target.
what do the knowledgeable ones think i should do…brolly or ltd
thanx
How were it if you would run a Ltd Company with a few friends as Partners to split the Cost?
Dont know if that would work
If you think it might be on going for a few years meaning at least 2 or 3 go limited if its short term just use the brolly company, get a good accountant like I did and you’ll be laughing.
you are self employed. you are the boss. so send in a bill for the full amount, that’s what they owe you.
bald bloke:
If you think it might be on going for a few years meaning at least 2 or 3 go limited if its short term just use the brolly company, get a good accountant like I did and you’ll be laughing.
how much can i expect to pay in banking fees 
also,does my quote for insurance seem ok
commonrail:
bald bloke:
If you think it might be on going for a few years meaning at least 2 or 3 go limited if its short term just use the brolly company, get a good accountant like I did and you’ll be laughing.how much can i expect to pay in banking fees
usually nothing in the 1st 12months.
insurance, £50-£80.
company formation, less than £20.
accountant £0.00. if a one man opperation needs an accountant, then that man shouldn’t be in business.
thanx for that.what about banking fees after the first 12 months
commonrail:
thanx for that.what about banking fees after the first 12 months
usually about 30p per payment in/out. some charge a flat monthly fee.
i ran a company for a long time on a personal account though.
be careful with some advice regarding accountants, my brother was a very smug git for about 2 minutes. he paid an accountant about £500. he said she had saved him £2000 in tax.
he had only put £40000 through his account, paid out around £20000. deduct personal tax allowance, deduct dividends, deduct capital gains tax allowance.
and you have a tax rebate. 
what about formation companys any good
Are your intentions to carry on working for the agency, if that’s what you intend then you’d probably be better off on PAYE.
this is not an option…ltd company or brolly
i am intending to stay with agency for ever,unless i get offered a very good job
Why are they saying this> What do they see as a problem with a sole trader- non ltd- company? I don’t have, or didn’t have any problems last time agencies asked me to do jobs for them. OK, I’m VAT reg etc, but why do they insist you are ltd?
i don`t know
I went the LTD comp way and never looked back lot more perks than self employed cos when you are a ltd comp you are an employee of the comp ie director 
Is this the agency in at NFT?
If it is, they have different ‘rules’ at different offices. Some of the lads at Crick are on PAYE, but Alfreton won’t do PAYE for some reason, I didn’t ask as he was insistent on the Umbrella so I didn’t finish filling the form in and Walked
i dont work for adr,but the agency i do work for get my work from adr.the brolly co they put me in touch with take 14% but then when i get my tax bill they give me 9% back :confused: i phoned the agency this morning to ask if i could go it alone,and they said only if via ltd company.theyve sent me some info on how to get started.
from what i understand all i have to do is register my company name,open a business bank account then take out personal protection insurance.
it sounds easy enough but is it really that much better than going brolly.
p.s i wanted to ask the guy from the brolly co some questions,but i can`t get hold of him…this does not exactly fill me with confidence.
p.p.s i thought paye was finished now 
limeyphil:
you are self employed. you are the boss. so send in a bill for the full amount, that’s what they owe you.
If only life were that simple, it’s a few years since I worked for agencies so not sure whether what follows is now totally relevant.
Lots of agencies will not supply work to self employed, it’s either PAYE or Ltd Co., umbrella companies do the Ltd Co bit for you.
If they won’t supply you with work it is very difficult to invoice them!!!
I have been self employed, VAT registered for more than 25 years both as a sole trader and as a partnership and at various times and have worked through agencies as well as my own customers. Several years ago the agencies would not accept my invoices (supposedly on the instructions of HMRC).On contacting HMRC they confirmed this so on the increasingly rare occasions ( I am fussy) that I worked through agencies it was PAYE, this didn’t worry me much as I claimed expenses through the rest of my business.
Your other comment regarding accountants is rubbish. I am numerate and reasonably intelligent but have always used an accountant whilst keeping my own accounts, makes life simpler. Accountants build up a relationship with HMRC and, if it is a good relationship,they will normally accept figures without investigation. Do you fill in your own self assessment forms, how long does it take, I don’t even see mine now.
As far as I am aware a Ltd Co. must use a chartered accountant.
commonrail:
p.p.s i thought paye was finished now
Some agencies are now reluctant to take people on PAYE, the reason for this is that they make more money if they can convince you to go through an umbrella company or go limited company.
tachograph:
commonrail:
p.p.s i thought paye was finished nowSome agencies are now reluctant to take people on PAYE, the reason for this is that they make more money if they can convince you to go through an umbrella company or go limited company.
Also it’s the way the agencies are getting around the Agency Working Regulations. Agency I used to use is only taking Ltd Co. or or their own ‘management co.’
commonrail:
what about formation companys
just go on the companies house website, you can form a company in about 20 minutes.
if you have any problems, just send a pm.
i’ll be glad to help if i can.