Another Noob Situation..

[wildkat]

Hi All,

I have been contracting in IT for about a year and now wish to change to limited instead of using an umbrella company. The problem is where to start, I have read online articles etc but the advice seems a little too general.

Basically I need a private accountant that knows a bit about how IT contracts work. Thats my first problem, the accountants I have called up so far dont really seem to recommend me changing to limited! So where can I find a suitable accountant and what should I be paying annually (dont want to be ripped off)?

How are the tax benefits calculated in reality? Is it low salary, pay corp tax on my profit which I take as dividends at year end?

Also is there anything that I need to consider that may not be so obvious?

My apologies for all the questions but I just needed to ask the advise from people who are doing the same thing as I plan to. Much better than reading too much and being led down the wrong path..

Thanks very much!

[dmini]

Well, unless you have a good reason for not wanting to, I suggest you talk to one of the accountancy firms featured on here. I don't personally use them, but they are very experienced of handling contractors. The normal suspects are SKD, Upton Accountants and Nixon Williams. They understand how tax applies to 1 man contractor companies.
Other accountants may, or may not, be cheaper, but not understand the tax issues affecting us quite as well. I'm still waiting on an answer on certain questions off mine, due to that exact issue!
There are other ones that appear on these boards - they may appear on this thread as well, when they next come checking the forum

[Sockpuppet]

Basically I need a private accountant that knows a bit about how IT contracts work.

Why? You're not different to a normal business when it comes to accountancy.

[Waldorf]

I really suggest speaking to one of the specialists, they know what they are talking about.

I use Nixon Williams and can recommend them, but give a few a call and see what you think.

[wildkat]

Thanks very much for the responses.

I have narrowed it down to either Nixon Williams (good recommendations here) or one of two local accountants.

I have conflicting advice however, one accountant says be VAT registered and the other says theres no value if im not going over the threshold.
Which is more beneficial to me and do I have to be registered for some agencies/employers etc?