Accountant

[youngguy]

I'm just debating whether to go Umbrella or Limited. My long term plan is limited, but given it will be my first contract I'm thinking about umbrella until I get settled and get a buffer of money (under Umbrella I'd know exactly what I've got each month and I can put half into savings.)

Before anyone says it:-
Yes, I have read all the threads here and I know the majority of you say limited is the way
Yes, I know it maximises income
Yes, I know it takes on average an hour a month

So in order to take the plunge into limited I have started reading the guides etc.

I also met with an accountant and, to cut a long story short he says all I have to do is invoice the agency every month, keep receipts for an annual meeting with the accountant and sign VAT forms every quarter. He will do the rest (he'll even look at my contracts to see if they are outside IR35).

Does this sound about right? He seems geuine and I know someone who is with this guy but I want to make sure I know where responsibility lies for the various tasks.

[kirk]

Yep, that seems right; I was in the same boat as you in October last year, went Ltd. and got myself a good accountant (SJD) and haven't looked back.

[youngguy]

Yep, that seems right; I was in the same boat as you in October last year, went Ltd. and got myself a good accountant (SJD) and haven't looked back.

Did you start under umbrella to 'ease' into things or did you go straight to Limited?

[kirk]

Did you start under umbrella to 'ease' into things or did you go straight to Limited?

Ltd. straight away; if you use a brollie your contract is with the brollie so it can be difficult to change to Ltd. without a new contract etc.

[PAG]

If it helps. My first contract I also thought like you ...go with umbrella and then .... if I am sure I want to carry on I will open my own LTD.

so first 3 months I did that. Once opened my co, realised how fool I was !!! I paid more money to umbrella.

if you are deff. going with umbrella then make sure you can leave them when you want !!! and your agency is happy to change the contract with your LTD.

My advice .. open LTD. Ther eis nothing to it. Aslo you can lift the money sametime as yuor umbrella would have paid you. So there is no question of building buffer.

[marcnicol]

I would suggest going straight to Ltd. I had a very painful extraction process getting rid of the Umbrella. I thought it was an easy way to get started, but would have been much better off going through an accountant who could setup my Ltd and do everything for me. Nixon Williams claim to do it all. I've not used them yet , but I'm about to sign up after having setup my Ltd. myself.

If I knew then what I know now....

[LisaContractorUmbrella]

I would just like to point out that you should never have problems leaving your umbrella company. There should be no financial penalty and there is no reason why your P45 cannot be issued on the same day as the umbrella company processes the final payment from your agency/client. I would advise you to always question an umbrella company on this point before joining, even ask for confirmation in writing.

[marcnicol]

Leaving the umbrella was not a problem for me. It was the time it took to set up my Ltd, regiser for VAT & PAYE, open a bank account, get the new contracts drawn up and signed. All this resulted in a long delay before I could pay myself. I think it's better to get it all sorted up front and then you're away and running from the start.