The Service at OSK
Setting Up in Business
The Issues
When you decide to start contracting you need to work out which is the best structure for you to use. There are four main options to choose from :
- Agency employee
- Self-employed
- Limited Company
- Umbrella Company
Most contractors find their work through recruitment agencies. Although, there are some agencies who will take you on as an employee you may receive less per hour under this structure because the agency has to pay employers social security and they may, pass this cost onto you. However, because of the stringent income tax rules agencies are becoming increasingly reluctant to take on contractors on a self-employed basis.
For this reason, most contractors either operate through their own limited companies or else through an umbrella company.
