As Ed says be careful of IR35, the gist is if your acting the same as you would a full time employee then you have to put everything though PAYE (i.e. tax and both lots of NI). However, if you dont fall under IR35 there are a number of ways to work things to your advantage with company dividends, etc.
A number of umbrella companies exist which will technically employ you, and for a fee process your invoices, pay you and bill the end customer. So you wouldn't have to setup a LTD company.
If you run your own LTD company, even under IR35 there are some benefits (I think its an extra 5% you can claim tax relief on but an accountant will advise you of this).
http://www.contractorcalculator.co.uk/ might help with some of the maths and some advice.
It can give you freedom, likely better pay than a full time employee. However, it can be a pain in the **** with administration.
However, if you want to work for people for on a fixed term, e.g. 3months, 6months, a year, etc, it might be worth it.
If your looking for the (so called) security of a full time job, it's not a good way to go about it, unless your own LTD company can bring in enough money to do that for you (i.e. if they don't renew your contract, you get sick, etc the LTD company has the resouces to pay you even though no money is coming in.)
Quote:
Originally Posted by gid
and very important...no paid holidays
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Also no sick pay, or redundancy either.
Dan