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Leaving full time job - Sole trader or LTD???

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Hello, 

I am about to leave my full time job to sell online and work part time though an agencey

Applying for self employment is mind boggling right now, as they all have their major advantages and dis advantages. 

Ideally I want to be a sole trader, but then that would mean I can only work for agencies as PAYE but I will need to be working for several agencies as, I am a driver so work comes and goes, sounds OK but if I work for several agencies my I would be getting emergency tax all the time. 

Can anybody recommend the best solution for me? 

LTD would be the best option but come next April agencies will not touch us due to IR35. 

The next option would be umbrella, could I do umbrella full time, like pay all my driving and online profits through there?

Thanks.

 

 

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By Richard Grant
06th Sep 2020 18:25

There are a lot of variables to consider. Any idea how much you will make with agency work? Any projections for the on-line business? Have you done this before? What is your cash buffer at present and will it last?
The tax taken on emergency rate with be corrected when you submit a tax return or request a new code so simply a cashflow issue.
Stay away from the umbrella route for the driving work or you will end up paying employer's NIC on top of the usual deductions.
You need to get you projections together, make a rough plan and talk it through with an accountant or you could make some expensive mistakes.

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RLI
By lionofludesch
06th Sep 2020 19:10

Make sure you know what options aren't feasible. If agencies won't touch companies, cross them off your list of options.

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By Paul Crowley
06th Sep 2020 20:27

As an accountant, I find umbrella companies tend to be a bit of a challenge to get any useful information from.

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