Tier 1 HSMP Tax Structures?'

I’m on a Tier 1 visa and looking to start a contract. What are my options to get paid? The agency is telling me I have to go PAYE or setup my own company which sounds like a hassle.

Contractor Taxation Vocabulary: 


Under the terms of the visa

Under the terms of the visa you are free to chose any of the structures available to you in the UK. Which include: direct PAYE, Umbrella Company Structures, setup your own Limited Company or use a Financial Management Structure. The key issue for you is to ensure your earnings are at a high enough level (£37 000 will give you maximum points) to meet the requirements when you reapply for the Tier 1. You also need to take into account that there are only certain types of earnings that will be counted towards this. Make sure that you aren’t going to be earning a low PAYE salary with the bulk of your money going through other sources like Employee Benefit Trusts, Loan Schemes, Dividends or Offshore Trusts. The Home Office won’t count this as income and when you have to reapply for the Tier 1 you will be refused. Complying with these earnings levels is possible using any of the structures mentioned but some are far more tax efficient than others. We’ve got a solution that will get you points for £37k in earnings and won’t hit you for full PAYE and National Insurance contributions on your whole earnings. You can find more details here http://contractortaxation.com/?q=uk/tier-1-highly-skilled-worker-hsmp-vi...