Sole Trader or Limited Company. IT Contractor.

B

Barty

Registered User
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Hi

I will be starting a 3 month contract as a software developer in a weeks time.

I want to do contracting as I have been working in permenant positions for the past 7 years, and am looking for a change.

I will need to setup as Sole Trader or else go the limited company route, after having read stuff for the past 5 hrs i feel limited company is what i need to do.

Can anyone advise me on whether this is the correct way to go.

TIA
B.
 
Set up a ltd company if your are contracting longterm and if you intend to start a company pension
 
Thanks capall.

Do you think should i see how the contracting goes for first 6 months, before setting up limited company?

I would like to think i will be doing it for the forseeable future, but will depend on demand.

B.
 
barty,

if you are happy to stay contracting long term (and have control over your financial affairs) set up a limited company from the off - other wise you will have to go with an umbrella company (prima or cxc spring to mind). Agencies and by association employers will not employ you as a sole trader - lots of threads on here and boards.ie about it.

Setting up a limited company is pretty simple - use a company setup company - I used [broken link removed] early last year and would recommend them. Then you just need a good accountant (I can pm you mine if you like - he deals with quite a number of IT contractors and is part of reasonably large firm).

Cheers,
nai
 
I would stick with sole trade for the time being, would be easy enough to change over to ltd co after a few months when you see how things are getting on. If at this stage you have alot of work built up you could create goodwill in the ltd co which could save you quite abit of tax.
 
xxx said:
I would stick with sole trade for the time being, would be easy enough to change over to ltd co after a few months when you see how things are getting on. If at this stage you have alot of work built up you could create goodwill in the ltd co which could save you quite abit of tax.
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as i siad above - agencies will not deal with you in IT contract terms as a sole trader - it exposes them to a liability they are not willing to accept.
 
Thanks for all the advice, I am going to go the ltd route, an accountant has been recommended to me by a friend who has availed of his services for the past 2 years.

B.
 
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