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I have been contracting for a number of years.
Best route is for your OH to set up a limited company – in the contract world most companies don’t like dealing with sole traders. Set up isn’t expensive. When you do the set up divide the shares between yourself and OH – you can both take dividends which reduces the tax burden.
Look for a bank that offers free banking – many do 2 years, at the end of the free banking period move the account.
Get the contract reviewed before signing to check for IR35 status. I get my insurance from Qdos who are pretty good.
Take advice regarding VAT registration – I’m on a fixed rate, which means 1 charge @20% and pay 14.5%.
My salary is £680 per month, which means that it is below my personal tax allowance and isn’t subject to NI
Outgoings – quarterly VAT, yearly Corporation tax – this will be due 9 months after your end on tax year. 20% of profit. Monthly accountant fee.
Things you can claim – subsistence (up to £5 per day) milage, use of home as an office, telecoms.
Going contracting was the best thing I ever did – and will not go back to permanent employment again.