When should I start to work with an accountant?

[Dan@OrangeGenie]

It's entirely up to you.

If you're happy to manage a bank set up, VAT reg, PAYE reg, contract review whilst working on your contract, then appoint an accountant at a later date.

However, if you would rather get the paperwork out the way, have a company that is ready to roll and most importantly understand your IR35 position (this will determine how you take money from your company) then appoint an accountant as soon as possible.

[Forbes Young]

Choose your accountant carefully

As an IT contractor, does it make sense to wait until to find a contract job(couple of months) or it's better to start working as soon as I finish company formation process?

With there being a vast choice of specialist contractor accountants to choose from these days, its important to choose your accountant carefully, so that you obtain the best advice at a reasonable cost. Many accountants will offer you free initial general advice and cover issues such as IR35, without asking for any commitment.

With this advice you can then look around for suitable contracts and once you are fairly sure that you have found the one for you, the next step can be taken - for instance you may well decide to form your own ltd company to trade through to save on tax and NI. You can then approach a few accountants, choose your favourite and they can then form a company/register your company for VAT/help set up a company bank account/advise on business insurances etc and then provide you with ongoing accountancy services from when you actually commence work on the contract.

[Jessica@WhiteFieldTax]

Hi d000hg

That's definitely something we will offer to clients, normally for the first couple of months of looking and I would imagine most other accountants would do the same thing.

Makes it easier from our point of view because everything can be setup in advance of the contract so things aren't as time pressured and then everything is in place for the 'go live' so to speak.

Martin
Contratax Ltd

Concur with this approach.

If imagine anyone offering a "free" Comany formation would be less keen on such an a arrangement, but it's something we do as standard.

[ContrataxLtd]

Concur with this approach.

If imagine anyone offering a "free" Comany formation would be less keen on such an a arrangement, but it's something we do as standard.

Hi Jessica

We offer a 'free' company formation service and don't mind the next couple of months being free of charge too if the client is still looking for a contract, goodwill and all that. I take the view that it's worth establishing a good relationship from the start as we look to work with all our clients for a number of years as I'm sure you do too.

To date it's working well because we've not had a client leave to go to another accountant yet!

Martin
Contratax Ltd