Is using an umbrella company the best option?

[wlf]

My circumstances are: I am living in the UK, and currently employed on a contract basis by a New Zealand company. They pay me monthly, based on an hourly rate and are my sole employer. There is no agency involved.

It seems my situation does not allow me to operate as a limited liability company, and that my options are to operate under an umbrella company, or possibly as a sole trader.

What benefits would an umbrella company provide? it appears to me that it is mainly automatic tax/NI deductions, and expense claims.

Am I able to operate as a sole trader, and is there much extra work/overhead involved? Goining this way it seems the main benefit is avoidance of umbrealla company fees, but of there is too much extra admin, it may not be worth it.

Thanks for any advice.

[David Colom]

Sadly you can not trade as self employed (sole trader) if you are working for one client on a contract. You could form a company, use an umbrella or if your day rate is over £250 consider an offshore salary packaging service.

[David Harmer]

wlf - there is not enough info about your working arrangements or circumstances to give any specific advice here. On the face of it I can see no reason why you cannot operate as a sole trader (it matters not how many engagements you have, merely how you provide services in practice).

If you do want to operate through an umbrella company, I would suggest going and talking to contractors on here to find out their experiences of specific companies to find out how it may affect your day to day arrangments.

Really and truly you need to go and speak to a suitably qualified accountant who can talk you through all of your options available to you personally - be particularaly cautious of anyone on forums who advise you to go through one route or another, everyone has their own agenda (whether obvious or not) - there is not enough information to recommend any one option over and above any other!