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Sole trader and ltd company

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Last year I quit my job to set up my own photography business. I'm running my business as a sole trader as I knew the income in the first year at least would be low and under my personal allowance. My old firm has asked me to go back on a 6 month contract. They have offered 2 rates - a lower day rate if I go through an umbrella company and a higher one if it's through a ltd company. 
My head is spinning somewhat. Couple of initial questions. 
Is the hassle of having a ltd company worth it for 6 months?

Can I be both a sole trader and have a ltd company?

Replies (7)

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By Tax Dragon
29th May 2020 08:47

ecs21 wrote:

Is the hassle of having a ltd company worth it for 6 months?

On those numbers? It's a coin toss.

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By Cheshire
29th May 2020 08:47

No
Yes

Thanks (1)
blue sheep
By NH
29th May 2020 10:19

Yes
Yes

Thanks (1)
Replying to NH:
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By Tax Dragon
29th May 2020 10:24

Ah, a double-headed coin.

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Replying to Tax Dragon:
Hallerud at Easter
By DJKL
29th May 2020 10:30

Why not, you probably get double headed dragons ( and for that matter double tailed ones).

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By paul.benny
29th May 2020 11:48

How certain is the 6 months - on their side and on your side? In particular, could the 6 months be longer?

For 6 months it's probably borderline whether umbrella or limited is better (ie you take home more) - although it does entirely depend on the difference in rates. But Limited is likely to be better if the 6 months extends to 12 or more.

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Replying to paul.benny:
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By ecs21
29th May 2020 11:52

It’s me who doesn’t want more than 6 months.
The day rate for ltd co is £70 more

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