Limited Companies Guide
Here is our limited companies guide for contractors.
When you start contracting it is important to decided if the Limited Companies route or the Umbrella Company is the right route for you. If you chose the Limited Company route it is important to get the right Accountant.
Limited Company or Umbrella Company
Contractors have a major decision when they choose between using limited Companies or Umbrella Companies.
When in Financial Trouble
This is crucial advice for IT Contractors. Ignore it at your peril.
There are 3 major factors when determining whether a contractor is caught by IR35 or not and 9 minor factors. We have a complete guide to them here.
Major IR35 Factors
1. The right of substitution – Can a contractor send someone else to do the job if he, or she, isn’t available.
2. Control – Does the contractor set his own work or is he, or she, been fed work and shown how to do it by someone within the client organisation.
3. Mutuality of Obligation – Is the contractor compelled to do the work and does the client have to pay him or her?
Further IR35 factors are:-
1. Financial Risk
2. The length of engagement
3. The right of dismissal
4. Basis of Payment
5. Part and Parcel of the Organisation
6. Provision of equipment
7. Employee Benefits
8. Whether you have the opportunity to benefit from sound management
9. The Intention of the parties
These are less important but it is still important to have as many of these under your belt if you want to stay outside IR35 and continue to use limited companies.