New to Contracting

[FiveTimes]

Don't be tempted, as I was, by Alliance and Leicester's offer of free business banking.

1. It's not that good a deal anyway - most of the major banks will do something similar.
2. They are utterly inept. After 6 weeks, they still hadn't sorted anything out. So I went to my local branch of Lloyds, and they set it all up in a week. Meanwhile, A&L still haven't noticed I told them to f-off, and occasionally send me crap.

I'm with A&L and apart from the slow setup, I've have no problems with them.

Horses for courses I suppose, but once the free banking ends then I might be tempted to switch.

Come to think of it, has anyone threatened to leave their bank due to charges and the bank has backed down and waived them ?

[TheBigYinJames]

.

But surely BYJ, you pay much more in tax and deductions having made the decision to go permanently 'under the brolly (albeit as a trade off to what you perceive to be a less-stressed existence)'? So, apart from the 'hassle factor', I don't quite see how you're winning here

I don't think I pay 'much' more, my guesstimate is about 5-10%, I'm not 'winning' in a purely financial sense, but I'm not losing too much either. And for me, that trade-off is good.

Obviously you young guns have made a sport out of squeezing every penny out of your tax vehicles as you can, and more power to your elbows if that's what you like doing. When I ran my ltd, I used to spend hours a month doing the paperwork etc (this was before t'internet) and if you costed that up at your hourly rate, that was a 'loss' too

[ASB]

Yes as I've explained elsewhere, as a veteran of a 90s tax investigation which ruined my life for almost a year, I prefer the easy life these days. Even if it means I lose some income.

I can certainly empathise with that. My investigations was over 3 years. One tends to end up with a very jaundiced view and I totally understand how this can make you feel the trade off between brolly and ltd is worth paying.

[Lewis]

I can certainly empathise with that. My investigations was over 3 years. One tends to end up with a very jaundiced view and I totally understand how this can make you feel the trade off between brolly and ltd is worth paying.

If you don't mind saying, briefly what were your investigations about and what were the outcomes? I'm assuming they where some kind of PAYE or IR35 thing and you were eventually found to be ok but I'd be interested to know what your situations were in case it could happen to me.

[TheBigYinJames]

If you don't mind saying, briefly what were your investigations about and what were the outcomes? I'm assuming they where some kind of PAYE or IR35 thing and you were eventually found to be ok but I'd be interested to know what your situations were in case it could happen to me.

My troubles were pre-IR35, and in those days it was a bit more like the wild west. I took some very bad accountancy advice about what was allowable, and ended up with a tax liability (NIC, CGT, etc) of several thousand pounds. Once they had their jaws into me, they took apart all my finances, and it was a very nasty time, especially since I'd gone permie by then and didn't have a ready supply of cash.

In the end we came to a settlement on the final value (my accountant had gone bust by then, coward) so they got an independent CA firm in to make a adjustment and a settlement was agreed which I paid off.

It wasn't so much the money, just the continual grind of having to deal with them poking into my business over a long period of time, asking questions about payments I had forgotten, I got really depressed. I used to look at people in the street and wonder how I couldn't just have an easy life like them. I'm not a person who deals with that sort of continual grind very well, I'm an old hippie. I just wanted an easy life, with as little paperwork as I could get away with, no deadlines, forms, returns of taxmen breathing down my neck.

Now I do

[ASB]

If you don't mind saying, briefly what were your investigations about and what were the outcomes? I'm assuming they where some kind of PAYE or IR35 thing and you were eventually found to be ok but I'd be interested to know what your situations were in case it could happen to me.

It was originally a compliance review on my company. This widened into an investigation into all my tax returns for lord knows how long. They opened the batting with an assessment to the company of about 30k which was eventually settled down to about 5k. Previous accountant couldn't add up

They gave me an large assessment initially which was just produced by some sort of random number generator. Eventually settled at just over 10k (which was actually less than our original offer 3 years earlier). Of particular interest to them was:-

Company paying rent on office in the house and me claiming it under the rent a room scheme (this was basically all we accepted because the law was unclear and subsequently clarified).

Mrs ASB's company car because she coincidentally only got the car and this came out as < 8500 BIK so was not taxable (we won this one in the end)

BIK for the company placing certain assets at my disposal

Various accounts offshore (all of which was declared though) got them really excited. This was actually by far the worst bit, proving the original source of the funds etc.

It's very tedious, very stressful and very expensive. I believe now professional fees for dealing with a protracted investigation are often > 10k. mine were about have that 10 years ago.

[malvolio]

...

It's very tedious, very stressful and very expensive. I believe now professional fees for dealing with a protracted investigation are often > 10k. mine were about have that 10 years ago.

PCG Plus. £230 a year...

[TheBigYinJames]

PCG Plus. £230 a year...

No amount of money is worth 12-36 months of living hell.

[ASB]

PCG Plus. £230 a year...

Of course insurance is one option. If one has average luck then one will be out of pocket over the long term.

For me I tend not to insure anything I don't have to. I think I have paid out less in fees over a 25 year period than I would have paid in premiums (premia?)

Just depends on attitude to risk.

[zippo]

Full Steam ahead

Guy's....

I have things moving along nicely:

• Secured new contract

• Created LTD company
55% me - Director
45% spouse - Secretary

• Become Vat registered

• contract to be reviewed for IR35 (Bauer & Cottrell)

• chosen accountants SJD

• Become member of PCG Plus

• Purchase indemnity insurance

Can you guys think of anything I have forgotten?

Cheers