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When should I start to work with an accountant?

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    When should I start to work with an accountant?

    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?

    #2
    Originally posted by psg View Post
    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?
    I'd have started working with an accountant before you even formed the company. That way you will probably save on the formation fees as most contractor specialists will do this free of charge, they can give you advise on the best setup (possible splitting shares with a spouse) and can get all the other registrations done in time for you to start contracting.

    Just my opinion though, I know some people like to secure the contract and then get everything setup.

    Martin
    Contratax Ltd

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      #3
      Originally posted by psg View Post
      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?
      It's best to start the company and start work as soon as possible after starting the company. Starting a company and then not using it isn't very smart.
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        #4
        Originally posted by psg View Post
        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?
        Nothing to stop you visiting a few accountants (dont believe all you read here that internet 'contractor specialists' are the only way to go) to get the feel of them and find one you get on with and gives good advice before you get a contract.

        Before I started, I visited a number of local accountants. I could tell some had IT contractor clients and some just saw you as another company. So I concentrated on those who could show they knew about IT contractor needs by visiting them a couple of times. Id then narrowed it down to 2 and of these, I struck up a relationship with 1 and they got my business.

        Do not believe you have to go with those internet IT accountancy busineses, despite what some will tell you, a number of High Street accountants are contractor savvie.

        I can pick up the phone, get an email response out of hours or call into the office and I dont get charged extra. The relationship was so good I continue using them even though Im not active.
        I couldn't give two fornicators! Yes, really!

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          #5
          Originally posted by TheFaQQer View Post
          It's best to start the company and start work as soon as possible after starting the company. Starting a company and then not using it isn't very smart.
          Doesnt really make much difference because you can extend the company year end once to a max 18 months I think.
          I couldn't give two fornicators! Yes, really!

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            #6
            Originally posted by ContrataxLtd View Post
            I'd have started working with an accountant before you even formed the company. That way you will probably save on the formation fees as most contractor specialists will do this free of charge, they can give you advise on the best setup (possible splitting shares with a spouse) and can get all the other registrations done in time for you to start contracting.

            Just my opinion though, I know some people like to secure the contract and then get everything setup.

            Martin
            Contratax Ltd
            Sounds good! securing the contract then forming a company and working with an accountant. Is there any disadvantage or is it legal to find a contract job without having a ltd company?

            Originally posted by BolshieBastard View Post
            Nothing to stop you visiting a few accountants (dont believe all you read here that internet 'contractor specialists' are the only way to go) to get the feel of them and find one you get on with and gives good advice before you get a contract.

            Before I started, I visited a number of local accountants. I could tell some had IT contractor clients and some just saw you as another company. So I concentrated on those who could show they knew about IT contractor needs by visiting them a couple of times. Id then narrowed it down to 2 and of these, I struck up a relationship with 1 and they got my business.

            Do not believe you have to go with those internet IT accountancy busineses, despite what some will tell you, a number of High Street accountants are contractor savvie.

            I can pick up the phone, get an email response out of hours or call into the office and I dont get charged extra. The relationship was so good I continue using them even though Im not active.
            Which accountant did you choose?

            Comment


              #7
              Originally posted by psg View Post
              Sounds good! securing the contract then forming a company and working with an accountant. Is there any disadvantage or is it legal to find a contract job without having a ltd company?
              It's perfectly fine to secure a contract then work with an accountant, however, you will need the Limited company formed before you can sign the contract as this will need to be between the client or agency and your limited company.

              Normally a Limited company can be formed in as little as a few hours, bank account and VAT probably take about a week and PAYE a couple of days.

              Martin
              Contratax Ltd

              Comment


                #8
                Originally posted by BolshieBastard View Post
                Doesnt really make much difference because you can extend the company year end once to a max 18 months I think.
                Paying £100+ a month before you start working through the company though is something you might wish to avoid.

                That said I wouldn't be surprised if some accountants might cut you a deal in this case to get your business - no fees until you get your first contract, up to a maximum of N months. Worth asking about.
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                  #9
                  Originally posted by d000hg View Post
                  Paying £100+ a month before you start working through the company though is something you might wish to avoid.

                  That said I wouldn't be surprised if some accountants might cut you a deal in this case to get your business - no fees until you get your first contract, up to a maximum of N months. Worth asking about.
                  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

                  Comment


                    #10
                    Originally posted by d000hg View Post
                    Paying £100+ a month before you start working through the company though is something you might wish to avoid.

                    That said I wouldn't be surprised if some accountants might cut you a deal in this case to get your business - no fees until you get your first contract, up to a maximum of N months. Worth asking about.
                    With smaller practices, fee timings are negotiable and aren't as rigid as the larger firms, so this kind of arrangement would usually be available depending on individual circumstances. It's certainly something that we'd be happy to discuss.

                    I agree with Martin, I'd rather have longer time to get the tax registrations and bank account application sorted, to allow for the inevitable queries and delays by HMRC and the bank, to avoid stress of last minute panics.

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