Confused about your options as an IT Contractor?
Contact Nasa!
As an IT Contractor, you have a lot to consider, particularly
when starting out. Many decisions have to be made about how
your business is going to work before you can start to think about
getting on with the actual work itself. As an IT Contractor
you must also take into account IR35. This is a major factor
to consider. IR35 is a complex piece of legislation that
applies to small (usually one man band) limited companies providing
services, typically via agencies and if you don't seek professional
advice, it could cost you thousands. This is why so many IT
Contractors now choose to remove the burden of IR35 completely by
using umbrella companies. An umbrella company is now a very
popular option as it not only removes the whole drama of IR35, but
it also takes away all of the administration and accounting
headaches you get with running your own limited company. A
good umbrella company will take care of invoicing your agency,
calculating and paying your tax and NIC, processing your expenses
and arranging your agency contracts. If you're an IT
Contractor, it's well worth looking into this option further.
Despite the popularity of umbrella companies however, we mustn't
disregard limited companies as they still remain the most common
way of contracting. The main benefit of trading via a limited
company is the limited liability given to the company's officers
and shareholders. Sole Traders for example, could have their
personal assets at risk in the event of the business failing.
If you choose to open your own limited company, you generally have
more control over your business however with this comes more
work!
If you're an IT Contractor and you would like some information
or advice about any of the comments made above, please do not
hesitate to contact us on 0117 904 7755 or at info@nasaconsulting.com.
Our team of experts are always happy to help.