Working as a contractor

kj2010

Started contract work recently and have just found out I have to set myself up as a LTD company (job is just regular). Umbrealla company is contractorsplus.com

Couple of question's if anyone can answer them:

Is it possible to just get the gross pay and pay the tax's/PAYE etc at the end of the year?

I was not working since Jan either - Aug so would I pay less tax in this case?

And what is a regular % of pay to come out with of your gross once all tax's are taken out? (approx)

Anyone else in this situation any feedback would be great as its new to me

srsly78

The umbrella will take a huge cut, and then they will also likely take 10.5% for employers prsi (these are extra charges on top of normal income tax+prsi+usc). This depends on the structure - are you a proprietary director or a normal employee? In either case normal PAYE will be administered. If your tax credits are in order this should mean no overpayment. However note that self-employed people need to file a form 11 and can only claim various credits the following year (stuff like rental tax credit etc). However note again that depending on the setup you may not be self-employed - this has pros and cons.

Talk to an accountant, the umbrella company will not give you impartial advice - they will only advise you to use what pays them the most.

mozattack

Recommend reading up on the 'Contractors Project' before claiming any expenses too BTW