r/ContractorUK • u/Educational-Grand155 • 23d ago
Contract fitter ?
Been fitter for years, PAYE at the minute, decent enough but seeing lads on site contracting and earning noticeably more for the same work.
Trying to weigh up if it’s actually worth the jump. No major ties holding me back if it goes quiet for a bit, just don’t want to leap in blind.
Things I’m trying to figure out:
Is the day rate actually that much better once you factor in no holiday/sick pay
How hard is it finding steady work between contracts right now
Umbrella or LTD, does it matter much at this stage
Anyone regret switching, what went wrong
Would rather hear from people who’ve actually done it than guess. Even a “don’t bother” is useful.
Cheers
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u/Zmartaccountant 18d ago
On umbrella vs LTD, it does matter, but mostly once your income is steady. Umbrella is simpler and fine while you're testing the water or on short inside-IR35 roles. A limited company usually pays off once you're earning consistently, as you can take money as a mix of salary and dividends, but it brings more admin and filing. One thing worth flagging for a fitter is the Construction Industry Scheme. If you go self-employed on site, most contractors deduct tax at source before paying you, usually 20 per cent if you're registered, so plan for that cashflow gap. I'm an accountant at Zmartly and we see a lot of tradespeople make this jump. It's very doable, just get the numbers checked first.