Contract roles..

**xirokx** · 29th May 2008

Hi,
Just found out I landed a 6 month contract role.
I have been advised to use an "umbrella company" or a "ltd company" who can do all my tax etc..
I have been recommended three companies, one company advised me they would charge �54 a month admin fee and take no additional monies from my salary...
I have never contracted before so wondered if anyone knew anything about this?
For example can I claim 100% public transport costs? what other costs can I reclaim and what percentage will I be reimbursed? Also what rate of tax do I pay on my salary?
All help would be appreciated..
Thanks

**Over Carl** · 29th May 2008

I used Gabem on a recommendation. I was horrified when I had 39.5% deducted from my first week. After getting bummed like that I decided using an umbrella company wasn't for me.

Also I'm of the understanding say if you spend �5 on public transport, then �5 of your pay becomes non taxable (provided you claim for it).

**xirokx** · 29th May 2008

I found a good company called contract umbrella who charges �54 a month..

If I am right can I claim all my public travel expenses back? whether its chargeable or non chargeable?

**Over Carl** · 29th May 2008

They will charge you �54 per month. In addition to that, some will handle your tax, whilst I've heard of others that give you all of your cash but that leaves you responsible to handle it all. If you prefer the latter route, there's a company called Codestrong based in the channel isles, I think they only charge �25 per week.

You can't claim the travel back but it reduces how much tax you pay.

**xirokx** · 29th May 2008

for 6 months work do you suggest LTD company or umbrella?

How much does it cost to setup a LTD company?

From what I read they charge you �54 a month for everything...

Trouble is I haven't even seen my contract so don't know whether I can claim travel or not but suffice to say this place is 47 miles 1 way from where I live..