New to Contracting

[TheBigYinJames]

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

Open a company bank account.
Plan what to spend the money on.

[Lewis]

PCG Plus. £230 a year...

Out of curiosity, does PCG cover investigations into personal affairs? e.g. the offshore accounts mentioned above or would they stick to dealing with only company finances and self assessment tax returns.

[bracken]

You've missed the most important thing...

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

Arrange your company's Summer ball for all employees???

B

[slackbloke]

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

Why split 55/45 not 50/50 ?

[Lewis]

ASB and TheBigYinJames ... do you think if your company accounts had been squeeky clean things would have been different? I ask as it sounds like you both actually did have some outstanding tax to pay at the end of it all (due to bad advice, unclear legislation etc.). Am just wondering if the prudent path is to always err on the site of caution and claim absolutely nothing unless you're 110% sure it's allowable and ensure all accounts are correct to the penny. Would this stop an investigation in its tracks? (of course not an IR35 one).

[malvolio]

Out of curiosity, does PCG cover investigations into personal affairs? e.g. the offshore accounts mentioned above or would they stick to dealing with only company finances and self assessment tax returns.

It covers any tax investigation involving a member. Only restriction is that you can't be under investigation already.

More details at http://www.pcg.org.uk/cms/index.php?...647&Itemid=303

[TheBigYinJames]

ASB and TheBigYinJames ... do you think if your company accounts had been squeeky clean things would have been different? I ask as it sounds like you both actually did have some outstanding tax to pay at the end of it all (due to bad advice, unclear legislation etc.).

Certainly, but you have to remember what it was like back in the early 90s. IT Contracting was nowhere near as widespread as it is now, and there weren't as many accountants who specialised in the one-man-band company thing. My accountant still used double entry on a big bit of graph paper - didn't even use a spreadsheet or SAGE or anything. PAYE etc was all still done on paper forms, you had to look up your tax code on a big paper list.

Under those circumstances, a couple of lost receipts, a chequebook full of stubs going missing etc can have massive effect on your company records. Couple that with a doddering old fool of an accountant and you're headed for trouble.

It's different now, you can get bank statements online, you can keep a spreadsheet of all your expenses, and you can know exactly what your balance sheet is at any time. You can go to a specialist contractor accountancy who know what they are doing.

[zippo]

Share split

Why split 55/45 not 50/50 ?

No reason in particuler, Just going by some of the previous posts realy. Do you know of any pro's and Con's ?

[Lewis]

No reason in particuler, Just going by some of the previous posts realy. Do you know of any pro's and Con's ?

If your wife doesn't work then the closer to 50/50 you are the more tax you will save as a couple.

[slackbloke]

No reason in particuler, Just going by some of the previous posts realy. Do you know of any pro's and Con's ?

Depends if you are income shifting? If you are then it is a constraint as you would not be able to maximise the use of both personal tax allowances. If you stayed below the higher tax limit by paying yourself just up to the limit, you would not be able to pay the same (due to the 55/45 split) to your partner and therfore not take full advantage of their allowance.