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  1. #1
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    Electronics engineering contracting under "limited company" or "umbrella"

    Hi,
    Do you know which is best for electronic engineering contracting? (in UK) ...is it "limited company" or "umbrella".

    Suppose the contracts finish, and you then take a permanent job somewhere, isnt there a big fee to close down the "limited company" if you went that route?

    Also, there are huge fines if a “Limited company” doesn’t do all its tax returns…even if you have an accountant to do it all, surely it means having to place too much trust in that accountant to manage the books in a way that’s not going to get you…
    1…sent to prison
    2….Having to pay hefty fines

    So isnt "Umbrella" working just so much safer?

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  2. #2
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    Re: Electronics engineering contracting under "limited company" or "umbrella"

    I've never come across 'umbrella' as a legal term in contracting but there is no obligation to become a limited company if you are a sole trader. The laws about accounting and tax still apply though. A 'Ltd.' company is technically called a 'company limited by guarantee' meaning that shareholders are only liable to the extent of the value of their holding. If a company goes down the tubes the shareholders lose the value of their shares but they are not further liable to the losses of the company. If you have no shareholders it isn't an issue. There is much about this on the UK Government web site, including the fees to register and de-register a company. They are actually surprisingly small !

    Brian.
    PLEASE - no friends requests or private emails, I simply don't have time to reply to them all.
    It's better to share your questions and answers on Edaboard so we can all benefit from each others experiences.

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