A guide to Contracting (specifically IT Contracting) by Stuart Sparks
Hello and welcome to my site.
Firstly, as is obvious to see, this site is still very much under construction so please bear with me.
I intend to use this contracting help site as a reference, info gathering and general discussion board between myself and other contractors mostly about payroll methods. With the most common ways being to use an Umbrella company, or to form a Limited (Ltd) Company. I myself have my own Sparks I.T. Ltd company (www.sparks-net.co.uk) but i regularly come across other contractors who are not sure which way to go, or even infact that there are options available. I can't say that there is a simple "best all round solution" as the 2 methods offer different options which may or may not suite certain contractors.
As you may have already noticed, you can easily google this kind of subject and find ridiculously huge amounts of company's offering to provide you with the most money paid to you from your earnings. There are several things to be aware of, methods which are becoming "illegal" as the Government push harder to clamp down on phony contractors - ie. those who work full time at 1 job for years and years but still try to claim they are outside of IR35. For those of you who don't know what IR35 is, don't worry i'll get to it later! But generally i believe the 2 methods fall into 2 basic categories:
1 - Those contractors who are keen and dedicated to contracting, are always changing projects/contracts and are happy to keep track of their own expenses etc. (Which i believe should opt for the Ltd company option)
2 - Those that are just "temping", just on a contract as a temporary means in between losing and getting a new permanent job, also those who simply don't want to be involved with any accounting and finally if you're just scared off the tax man!
I'd love to hear your thoughts on a site like this and really appreciate any suggestions!