You might start out consulting as a W2 employee through agencies ... working as an employee for the agency where they take taxes out ... there, you are covered by insurance (E&O - Errors and Omission) in case you screw up royally and get sued.
Later if you start your own company and go out on your own, you can purchase E&O insurance to cover yourself ... E&O is like a Doctor's Malpractice Insurance.
Hi Delinquent,
I contracted in the UK from 1992 to 1998. I advise you to get an accountant and set up a company. Lots of tax benefits. Plus when I was in the UK the business tax rate dropped to about 21p in the pound. Especially works when you have other business interests. You need a good accountant. Ask around. I know a really good one if you get stuck. In Kings Lyn. If you go the sole trader or work as an employee you miss out on lots of tax advantages.
Kimbo
Hey Delignquent
I recently began contracting. I hired an accountant to do everything, she set up a private limited company and had it VAT registered (importnt).
Accountants aren't too expensive for contractors as the accounts are pretty simple for them. You are looking at £60-£100/pm.
I personally am about to ditch my accountant, because it's all pretty simple stuff and HMRC explains things really well, so need to worry.
brought to you by enabling practitioners & organizations to achieve their goals using: