LTD, Umbrella Company or PAYE?

[SephrinaX]

Due to redundancy, DH is looking at contract work. Neither of us have any experience with this as we have both always been staff.

I was just wondering if anyone could advice on what it the best/easiest option of the 3? Or does it depend on the rate you're on etc.

Thanks!

Will the contract be under IR35 or not, that makes a huge difference.
If it is then the LTD company is a bit pointless
We use a ltd co but don’t take contracts inside IR35 as it’s the worst of both worlds.
Umbrella companies can be expensive and delay payments, some are absolute cowboys but if you find a good one they can take a lot of the hassle out of things. If you aren’t business minded (or don’t want to be) they can be a good option but we don’t use them as between myself and our wonderful Accountant there is no need.
Contract work can be great but it’s not steady and has pitfalls, the day rate often looks very high but when you take everything into account it’s not as good as it initially looks. We won’t work any other way, it suits us but it’s not for everyone and it a big contrast to being employed.

We employ quite a few contractors and they work for us under - Ltd company (VAT and Non VAT), Zero hours, Sole trader. The contractors who work under zero hours tend to be the ones who work on a more part time hours basis and don't want the hassle of setting up a company - which has favourable tax benefits. There's a IR35 survey on the Gov.uk website to check if you fall under it but be warned it's not black or white. We put a clause in the contractor's statement of services/contract to say that they would be responsible for any employment costs we incur in the event that we are pursued by the inland revenue for National Insurance costs. If they don't wish to sign that, we would insist that they went on a zero hours contract or we would reduce their day rate - to eliminate our exposure.