Newbie needs accounting and any other contracting advice!!!

[Damo_T]

Hi,
I was made redundant from my permenant job and have now got a contract one which I start next Monday. The agency said the easiest way is just to go under an umbrella but reading other advice, it would seem better to set up a Ltd. company.

Can anyone recommend a good reasonably priced accountancy firm who will do as much as possible? I have seen posts on here for some charging £55 but it doesn't state who they are.

Can anyone recommend a bank with low charges at the minute who I could look into?

What else do I need? Some sort of insurance?

I would normally have researched things thoroughly but it has al happened quicker than expected and time to sort things out is limited.
Any advice is much much appreciated.
Thanks in advanced.

[Waldorf]

There are several good accountants out there, I use http://www.nixonwilliams.com, can't fault their service.

Cater Allen offers free banking although no interest at the moment, Qdos offer the insurance you will need.

Nixon Williams pointed me in the right direction for all my needs.

PS Just noticed that they have a guide that may be of use to you http://www.nixonwilliams.com/LimitedCompanyGuide.pdf

[Menelaus]

SJD Accountancy are good and if you decide after consideration that you do want to use a brolly, they've got their own brollyco (Contractor Umbrella - I use them).

[Gonzo]

An umbrella company is easier for you than running a Limited company, but there is not too much effort involved in a running a company in the way that IT Contractors tend to.

A lot depends on whether you see yourself contracting for a long term of whether this is a stop-gap before your next permie job.

You have to view the costs of running a company in one year cycles.

Don't make the common mistake of thinking that an accountant who charges £55 per month does £55 of work for you per month. It will be more like £660 per year (although I don't know where you would find one that cheap).

The main point is that it doesn't make much difference if you contract for one month or twelve months, if you run a limited company you have the costs for whole years.

If you go the umbrella route then that puts an additional entity into the payment chain between the client and you and that adds risk to your payments. The amount of risk will depend on how fly-by-night the umbrella that you use is.

Running your own company is the most tax efficient and it is not too difficult. The first timer guide on this site (over there ------------------>) is useful.

Have a look at the one on the Nixon Williams website, the SJD Accountancy website and the Professional Contractors' Group website. Then you will know everything that you need to.

[Gonzo]

On the pro-brolly side, provided you don't take the micky with your expense claims, then because you are an employee you don't have any concerns about the current government thinking of you as tax dodging scum and HMRC going through your returns with a fine toothcomb.

(You will pay a lot more tax though.)*

Whatever makes you sleep better at night I suppose.








*EDIT: For the benefit of pedants: Using a company will actually result in a slightly higher tax bill than for an employee but will save a whole load of National Insurance Contributions.

[FarmerPalmer]

I don't use an accountant any more, so can't recommend one.

I use Abbey National, which give free banking.

QDOS covers my insurance.

You need employers liability & public liability insurance by law.

[NickNick]

I don't use an accountant any more, so can't recommend one.

I use Abbey National, which give free banking.

QDOS covers my insurance.

You need employers liability & public liability insurance by law.

By Law? I never realised that. Mine's recently expired and I'm in the process of getting more, does that mean I'm illeagally trading then?

[TheRefactornator]

By Law? I never realised that. Mine's recently expired and I'm in the process of getting more, does that mean I'm illeagally trading then?

Any employer which is a company that has only one employee and that employee also owns fifty per cent or more of the issued share capital in that company is exempt from legally requiring employers liability insurance (http://www.hse.gov.uk/foi/internalop...01-099/1_8.htm)

Indemnity insurance maybe required by your client / contract however I don't believe there is any legal requirement.

[Damo_T]

Thank ever so much for all your advice. I have spoken to Nixon Williams who were most helpful, they will even set up my company and a bank account with Cater Allan, what great customer service and just what I was looking for.
Many thanks to you all.