self-employed vs. limited companies

[pixi]

Hello everyone.

As being new to the UK and new to freelancing, I'm quite confused as to whether or not I should register myself as a limited company. I hear a lot of other freelancers are simply self-employed, yet most agencies won't pay people this way. And how can the government be okay with people not paying their tax until the end of the year?

So, in the meantime, I have been billing clients through an umbrella company. I just looked at the archives and saw some fairly scary opinions on there about these.

Can anyone shed some light?

[hsmphopeful]

I am self-employed and have worked both in my personal capacity and through my own company in UK and elsewhere. The brief answer is that unless you have consulted with a qualified accountant and earn substantial amounts of money (in UK terms, that is), there is no need in going through the hassle and expense of working through your own company managed by yourself. Either bill in your own name or use an umbrella company. In any case you pay taxes, the difference is how much, how, and when. In short, keep things simple and consult a qualified accountant because this is all general info - very much depends on your particular circumstances. Hope this helps!

[ankitv]

As hsmphopeful said, it depends on the money involved and how long you plan to stay and work for here. Limited company will give you better control of your finances, whereas working through umbrella companies will be more flexible and no strings attached king of thing.

So advice you to think over it and assess which one's best for you.