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Limited, sole trader or umbrella?

Q. I am due to start a part time (3 days/week) job as a contractor to an agency. I have never done this before having always been an employee. The rate for the work is £20/hr or £25/hr umbrella?

I have asked questions of many people, including the agency, and have been told many different answers, ie, register as a contractor, go limited and register as a sole trader.

A. We cannot advise you on how to operate as a contractor as there are many factors to consider, such as your personal financial situation, the IR35 legislation which could affect you, how long you intend to trade for, and so on. We have a number of guides on the site to help you make your decision, but ultimately this is a personal decision to make based on your circumstances and intentions.

By Contractor Doctor


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1 thought on “Limited, sole trader or umbrella?”

  1. Christina

    It seems more agencies are getting on this bandwagon – even for relatively low paid temporary admin work. My daughter was told to form a Ltd Co or go with an umbrella, for an £8/9 ph job – how ridiculous is that?

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