The Shift: Issue #26
Sole trader vs limited company or umbrella – what’s best? IR35 changes; Parliamentary debate on the future of work; Seth Godin on creative practice.
I had to set up a limited company last year for a new contract role via an agency. My tax status only came up after I’d done the interview, a written test, and been offered the role. My agent said, “oh, we don’t work with sole traders.”
It was a chunky project – a six-month contract to write a book for a big brand and they were happy to pay my day rate, so I went for it. I set up a limited company via Companies House – fast, no-nonsense, and costs £12. I had to sort out business insurance (took much longer), an accountant, and a business bank account with a UK address for IBAN (EUR) payments.
A bit of hassle for one contract but that was the deal. And I wanted the job, so I did it but not happily. I’ve been a sole trader since I started freelancing back in 2002 and was gifted a limited company once (we broke up, I wasn’t ready; I have commitment issues). I don’t think individuals should operate as companies unless you’re employing someone. Nor should agencies and companies dictate you…
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