If you are considering becoming an engineering contractor then this page will talk you through the two options available to you.
You can also follow the links below to the other pages in our engineering section which will give you information on how to become a contractor, how to operate through a limited company and how to secure an engineering contract
- Why Become an Engineering Contractor
- Becoming an Engineering Contractor?
- Working as an Engineering Contractor through your own Limited Company
- Finding an Engineering Contract
Following the April 2007 Budget announcements there are only two real options for engineering contractors:
1. Operate through your own limited company. It is very important to stress that these must be genuine, one person Limited Companies and not a ‘scheme’ dreamed up by what are nothing more than marketing organisations.
2. Work through a PAYE umbrella company and pay full income tax and full national insurance contributions on your entire earnings. For details of SJD’s umbrella company visit Parasol.
A large percentage of ‘employment services’ companies offering to set up Personal Service Companies or put you in a special ‘scheme’ are wide open to attack by HMRC under the new guidelines, and it is unlikely that the major agencies would deal with them. Remember, if they don’t have Accountancy in their name they probably aren’t Accountants.
Special update: SJD become the first and currently the only firm of accountants to have been reviewed and found to be fully compliant with all Managed Service Company (MSC) legislation by KPMG.
If you are thinking of freelancing through your own limited company, please read our new straightforward guide on How to Contract through your own Limited Company. You’ll be surprised how little time it takes and just how easy it is.
Alternatively, if you are undecided about whether to go limited or whether to consider using an umbrella company please visit our page Limited vs Umbrella – Take home pay through a limited or umbrella company – The differences.
If you have any question about contracting or would like any further advice please call our New business team on 01442 275789 or email firstname.lastname@example.org.