Paystream for Ltd / PSC services

[northernladuk]

You really don't - a bit of reading round here will tell you everything you need to pick an appropriate salary and how to handle dividends.

Heck FreeAgent will even do your end of year accounts submission to HMRC for you.

They were just two examples and yes if you were an experienced contractor it might help but we've only a small handfull of people on here doing their own accounting via Freeagent and even they keep having to come on to ask questions. Someone coming from Umbrella in to outside isn't going to know enough to do their own stuff just using Freeagent.

No way should someone in that situation be just using FA to do their accounting. Well, IMO after looking being here long enough to see seasoned contractors even with an accountant ballsing up their accounting.

[Fred Bloggs]

Having done DIY book keeping and reporting successfully myself, I wouldn't recommend it to everyone. Especially someone like the OP. I get the impression from the comments made that OP isn't interested enough to understand what responsibilities are involved with running an incorporated business. And definitely not without help from an accountant.

[eek]

Having done DIY book keeping and reporting successfully myself, I wouldn't recommend it to everyone. Especially someone like the OP. I get the impression from the comments made that OP isn't interested enough to understand what responsibilities are involved with running an incorporated business. And definitely not without help from an accountant.

In which case he should remain working via an umbrella because HMRC is going after anyone using an contractor accountancy firm....

And for those who don't want to do everything themselves I would be hunting for a small local firm that is outside of HMRC's radar and will pass HMRC's "is this an actual accountancy firm sniff test?" - because any accountancy firm that focusses on PSC contractors is definitely on HMRC list to annoy and seek more money from.

[Fred Bloggs]

In which case he should remain working via an umbrella because HMRC is going after anyone using an contractor accountancy firm....

And for those who don't want to do everything themselves I would be hunting for a small local firm that is outside of HMRC's radar and will pass HMRC's "is this an actual accountancy firm sniff test?" - because any accountancy firm that focusses on PSC contractors is definitely on HMRC list to annoy and seek more money from.

Fully agree.

[gables]

In which case he should remain working via an umbrella because HMRC is going after anyone using an contractor accountancy firm....

And for those who don't want to do everything themselves I would be hunting for a small local firm that is outside of HMRC's radar and will pass HMRC's "is this an actual accountancy firm sniff test?" - because any accountancy firm that focusses on PSC contractors is definitely on HMRC list to annoy and seek more money from.

Exactly this for me and keep it simple, record what you need to pass onto them for year end and use them for advice as and when.

[JRC1]

What about a company that use the Freeagent software that is mentioned here but still provide support/advice/reviews and assistance with things like VAT returns and Personal tax returns... e.g. someone like https://www.maslins.co.uk/ who appear to offer this service for £99 p/m and have excellent reviews.

Would you say this sort of service is less likely to be open to a MSCP investigation because they don't also have an Umbrella arm, or they are just as likely as someone like Paystream to be investigated in the future?

[jamesbrown]

What about a company that use the Freeagent software that is mentioned here but still provide support/advice/reviews and assistance with things like VAT returns and Personal tax returns... e.g. someone like https://www.maslins.co.uk/ who appear to offer this service for £99 p/m and have excellent reviews.

Would you say this sort of service is less likely to be open to a MSCP investigation because they don't also have an Umbrella arm, or they are just as likely as someone like Paystream to be investigated in the future?

It's hard to provide guidance on investigations, but CK and Boox seem to have been targeted fairly well, not randomly. In terms of risk, though, the risk will be much smaller with a practice like Maslins than some others. Still, a lower risk is a local/general practice that completes your year end returns only and the lowest possible risk is doing the accounts yourself (in terms of the MSC legislation, anyway, but perhaps not in terms of screw ups unless you know what you're doing!). It isn't FreeAgent or Xero per se that is the distinguishing factor, it's more the correlation between using these tools and the level of hand-holding you're likely to get (smaller). Of course, it's perfectly possible that you could build a highly controlling/hand-holding service on top of any particular book-keeping software.

You should really do the routine (payroll and VAT) returns yourself, though, and keep all of the paperwork and correspondence that clarifies that you are choosing how to set your salary and pay dividends to any shareholders. You should reserve help for the year-end returns at most.

[Fred Bloggs]

What about a company that use the Freeagent software that is mentioned here but still provide support/advice/reviews and assistance with things like VAT returns and Personal tax returns... e.g. someone like https://www.maslins.co.uk/ who appear to offer this service for £99 p/m and have excellent reviews.

Would you say this sort of service is less likely to be open to a MSCP investigation because they don't also have an Umbrella arm, or they are just as likely as someone like Paystream to be investigated in the future?

I don't need an accountant any more. But if I did, Maslins would probably be the first one I called. I think before you engage an accountant you should discuss concerns over further MSCP investigations with them and see for yourself how clued up they appear. Then you can judge for yourself whether you want a monthly subscription or an ad hoc as required paid for service. But FreeAgent in my opinion is an essential prerequisite either way.

[northernladuk]

I don't need an accountant any more. But if I did, Maslins would probably be the first one I called. I think before you engage an accountant you should discuss concerns over further MSCP investigations with them and see for yourself how clued up they appear. Then you can judge for yourself whether you want a monthly subscription or an ad hoc as required paid for service. But FreeAgent in my opinion is an essential prerequisite either way.

I also agree but I'm wondering what happens if accountants that want to only give accountancy advice get some chump on that doesn't have a clue. Not sure how Chris would feel if we recommend people that come to him and say 'Right, what do I do next' all the time.

If they onboard someone that starts asking questions about contracts, what business decisions to make and asking the accountant if they can do this and that it must put them in a difficult situation to not answer and appear unhelpful (but really that's the best way in the long run) or tell the contractor the answer and be at risk of running their business.

Personally I'd prefer an accountant that tells me to sod off that's not their area and they are keeping me (and them) safe from MSC but not everyone will like that approach

[Fred Bloggs]

I also agree but I'm wondering what happens if accountants that want to only give accountancy advice get some chump on that doesn't have a clue. Not sure how Chris would feel if we recommend people that come to him and say 'Right, what do I do next' all the time.

If they onboard someone that starts asking questions about contracts, what business decisions to make and asking the accountant if they can do this and that it must put them in a difficult situation to not answer and appear unhelpful (but really that's the best way in the long run) or tell the contractor the answer and be at risk of running their business.

Personally I'd prefer an accountant that tells me to sod off that's not their area and they are keeping me (and them) safe from MSC but not everyone will like that approach

FWIW, I'm not recommending a possible accountant the poster hasn't already identified for themselves.

If Mr Maslin doesn't want to answer what appear to be perfectly reasonable, highly topical questions then I'm more than sure he's perfectly capable of making that clear.

Further I think it would be a dereliction of duty if a director of a company didn't seek to carry out some due diligence before appointing any professional services company to act for them. Whether it was an accountant or something else.

Personally, if I asked such a question of an accountant and they responded how you describe, I'd be appalled.