I am 22, I recently handed in my notice at my current full time work place, my notice period is almost up and I have been offered a 12 month contract to develop software for a company as a freelancer from my home.
This would be my first time working as a contractor and my question is in relation to the inland revenue and my p45.
As soon as I have signed the contract and start work I will need to cover my own costs and accounting / tax returns. I am unclear about how I go about handling my p45, do I need to ask for this from my current employer?
How should I go about informing the inland revenue that I will be contracting. I know that I can either setup a limited company (the most advised path) or use an umbrella company (probably going to be easiest for me). If I were to register with an umbrella company I believe my p45 will be involved / required. If I were to setup a limited company what would happen to my p45?
I have tried searching the internet but have not had much luck finding the information I am looking for, therefore I thought it might be best to consult others here, I am looking for the best advice (including references).
Many Thanks, Christian