Temp job-PAYE or set myself up as a limited company?

(5 Posts)
sallycinnamum Wed 12-Jun-13 18:15:41

I have just landed a 3 month contract via an agency but they've given me the option of being paid via PAYE ir setting myself up as a limited company.

The difference between PAYE and limited is approx £40 a day.

I'm utterly confused as to what to do. Presumably whatever happens I've got to pay tax and NI so am I best off doing it as an employee or as a freelancer?

tungthai Wed 12-Jun-13 19:55:04

Could the job be deemed as a genuinely self employed position?

LadyCelia Mon 17-Jun-13 15:22:31

I'd say for a 3 month contract, you'd be better off sticking as PAYE. Maybe have a chat with one of the Umbrella companies such as Brookson or Giant Group and they might be able to run through their fees for doing all the Ltd. stuff for you, and then you can work out the maths. You can claim travel expenses if you're a Ltd.Co and work related phone calls, but not much else, so it all depends on what kind of work you are doing.

The agency will prefer you to go Ltd, less work for them & less liability if something goes wrong...

holidaysarenice Fri 21-Jun-13 00:32:03

Can i ask for some help on this too? I havent had to pay tax yet this year and won't, does that change what i should do?

Sorry for the hijack!

TracyK Fri 21-Jun-13 12:19:04

I'm only a sole trader - but have been able to invoice an agency for a temp job for the past couple of months.
I didn't have to go ltd.

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