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1st Option for accountancy

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    1st Option for accountancy

    Hi all

    I've been contracting for about 2.5 years (altho still kinda new to these forums, so hi!). Used an umbrella for about a year then went Ltd in January last year.

    At the time I was at the end of a contract and was due to start a new one straight after it. Someone recommended that I use 1st Option Consulting to set it up and manage it (tied in for the first 6 months) the Ltd company books. To be honest, they were very good at setting it up and are really very prompt with queries and getting my expenses done for me etc.

    I pay them about £125 per month for this service (inc VAT) from the company accounts. Pay myself about £1100 per month net salary, have expenses of about the same every month with travelling etc and all in all I send a cheque to the tax man for about £550 per month which covers everything (ees, ers, NI etc).

    I know a few people who are in a similar position to me and seem to be paying alot less tax but have very similar expenses and requirements etc. Plus, they seem to pay less for the service. 1st Option in comparison to what I hear from my colleagues seem to always play things very very "safe" with regards expenses and tax etc, which obviously isn't an overly bad thing. But, that said I can't help but wonder if I'm losing money monthly by staying with them.

    I'm wondering what other people's experiences are with them and what everyone's opinions are on whether or not to stay with them?

    I realise that's quite a generic overview of my situation and circumstances dictate everyone's ideal accounting solution but opinions are greatly welcomed.

    Thanks


    #2
    £550 tax & NI a month on a £1100 salary does seem pretty high to me... Are your expenses taxable (BIC expenses)? Does the £550 include what you pay in VAT?
    It's about time I changed this sig...

    Comment


      #3
      who recommended 1st option consulting as i have never heard of them

      smells like a bit of spam here!!

      Comment


        #4
        Can't remember who recommended them.

        The figures I'm payign dont include VAT as I get a VAT bill every quarter. I think theyt're running it as PAYE.

        I've got an appointment with my parent's accountant later to run it by him and see if he can do better.

        I pay:

        £132.22 ERs NiC
        £113.63 EEs NiC
        £360.41 PAYE

        every month.

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