To help me after I am made redundant, RT Systems Ltd has paid $2,000$ for me to attend a course on managing a small business. Following my redundancy, I will be taking a three month holiday but propose to accept the consultancy contract with RT Systems Ltd starting on $6$ April $2025.$ Although I hope to have a number of different clients in the future, RT Systems Ltd will initially be my only client. RT Systems Ltd has suggested I should form my own limited company, to be called PH Ltd and has provided the following proposed contract terms: $$ PH Ltd will invoice RT Systems Ltd for Peter Holmes's services on a monthly basis. $$ The contract will be for $12$ months and then must be renegotiated. $$ Working hours $$ both parties guarantee a minimum of $16$ hours work each week and up to a maximum of $30$ hours each week. $$ The agreed rate is $95$ per hour. $$ Peter Holmes will work from home using his own computer but must attend a weekly management meeting at RT Systems Ltd$.$ Peter Holmes will be responsible for supervising the work of five geologists who are employees of RT Systems Ltd$.$ The contract will state that there is no entitlement to sick or holiday pay and Peter Holmes will not be entitled to be a member of the RT Systems Ltd pension scheme. $$ The contract will state that Peter Holmes will not be an employee of RT Systems Ltd and PH Ltd will be responsible for the payment of taxes, for example income tax, national insurance and VAT. RT Systems Ltd has a staff of $60$ and annual turnover of $2$ million