I’ve been contracting for the last 3 years – PAYE with the client’s recruitment agency, and now looking at my next contract.

Ltd is advised as the best way to go for tax efficiency but having read up on HRMC rules I suspect I’ll breach IR35 as I’m likely to be doing long term contracts with a single employer each time. The rules basically say if it looks and sounds like a perm job, then it is a perm job… sitting in client’s offices, using their facilities and working their hours…

I’ve no problem paying due taxes, but I do want to find the best vehicle for contracting – so can I go Ltd and do long term contracts without breaching IR35, or do I need to just register as self-employed?

What’s the main differences between the two?

If by self employed you mean sole trader then my basic understanding is ltd is generally more tax efficient but needs more paperwork. Some companies won’t employ sole traders but I’ve not found it to be an issue.

Benefits to doing it either way. I like the benefit of being able to run a car and have the cost being accounted as a tax deductible expense rather than a taxable benefit (trading as a partnership, but the same goes for a sole trader).

We have never found it an issue not being Ltd and we work with universities, NHS Trusts, CCGs and various professional medical associations.

Ohh, and you get privacy of your financial position too – no publicly available accounts for people to nose at.

Length of contract is not a factor for ir35

If you were previously a ‘proper’ permie either the client though, that won’t look good