Starting my limited company
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    Nervous Newbie


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    Default Starting my limited company

    Hi, I’m not sure if this is the right section for help but I wanted to ask for a few pointers or maybe even guidance in the right direction.

    I’ve just started my limited company and hope to use the forums for some advice and help if possible,

    Basically my story is, I’ve just received a job at a F1 Team, my hourly rate is set at 21ph and I have been offered 40hours a week as a contractor, my contract is Ad Hoc but 9 times out of 10 this sort of job I’ve taken can go on for years. I’m actually replacing a contractor who is retiring from there,

    Anyway, I was given the choice of 3 things,

    1 - I go on the agency books that the F1 team use to hire contractors but I’d lose around 5-6 a hour.

    2 - I join 1 of 3 of the umbrella companies they have suggested can only use the 3 they have suggested and after some conversions on the phone they worked out as more of a loss to my earnings then Option 1 by about 25-35quid a week which I’m guessing is there fees for using there umbrella company ?,

    3 - I start a LTD company and operate as a Personal Service Company,

    I chose Option 3, My missus is good with the law side of things buts not so much from a tax accounts point of view but after a long discussion we both decided that the company was a good decision and moved forward with it,

    I just wanted to know is there anything I need to look out for when working as a contractor, I wanted to know how does the Revenue and Profit work when it comes to a wage for myself as I don’t sell anything or buy stock, I just go to work for a company.

    Also I know an accountant is needed but would it be ideal to get one that specialises in the Contractor Industry?

    I am a novice when it comes to this stuff but I’d like to learn and any information will be welcomed,

    Thank you.

  2. #2

    Double Godlike!

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    Doesn't matter now, contracting is screwed. You're IR35 caught and so won't be able to claim travel/accom.

    Go umbrella, Contractor Umbrella are well recommended and give out free iPads, a limited in your circumstances is just more work, more legal responsibly and more worry.

  3. #3

    Double Godlike!

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    Go to www.ipse.co.uk and follow the links to the Guide to Freelancing (just checked - it's not as obvious a it should be, so start from here). That should be your bible. There's also a lot of solid information on the links on the right. However your first step is to talk with one of the accountants that get mentioned on here regularly (for good reasons, that is, like First and Dynamo, not the ones we are always complaining about! There's a sticky somewhere which will help). They will point you in the right direction

    To answer your question, there are a lot of things to consider, too many to give one line answers to that won't confuse rather than help. For example, are you caught by IR35 (I'm guessing yes but genuinely don't know for certain) and that will have a huge bearing on where you go next. So start with the guides, then you will know what to ask for advice or clarification.

    And welcome to the world of being your own boss!
    Last edited by malvolio; 12th November 2017 at 19:43.
    Blog? What blog...?

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    Nervous Newbie


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    Thank you for your replies,

    Would anyone be able to let me know if they have had any dealings with the 3 umbrella companies they have told me I have to choose from if I wish to go through an umbrella company ?

    They are - Liberty Bishop / Danbro / Simplify Business

  5. #5

    Should post faster


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    Hi, it would be worth having a discussion with an accountant who specialises in accounts and tax services for contractors.

    There are several areas that need to be considered and discussed and it would seem foolhardy to rule anything out without full consideration of the facts of your particular situation.

    IR35 being among the more important areas for consideration it would be of benefit then to you to speak with an IPSE accredited accountant who would be able to help you assess your position with regards to this legislation.

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    Forget brollies and go with a FreeAgent account supported by an accountant. Plenty of recommendations around here. You are ideally placed when just starting up. FreeAgent accountants generally set everything up for you FOC, things like VAT registration, PAYE registration, company set up etc...
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    Prof Cunning @ Oxford Uni

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    If you have already chosen option 3, then get yourself an accountant. They will cost you money, but they'll make sure your tax returns are done correctly - there's a link on the right side of this page to some. If you choose one not listed, make sure they understanding contractor accounting.

    If you haven't already chosen, I'd suggest starting off with an umbrella and then once you've got a while under your belt and seen if it all works out for you, then switch to Ltd if you want. Again, there's a link on the right about Umbrella companies. We get positive feedback about Lisa from Contractor Umbrella, so she might be worth talking to.
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