Starting back contracting - bad credit this time though .....

[stegsie]

After nearly 9 years permie, I am contemplating going back contracting again. In the 9 years since I last contracted, I've had a fair bit of bad credit (don't ask!). A few defaulted payments and a CCJ too. For the last 5 years I've been on a debt management plan with the CCCS and am well under way to clearing all I owe. Still a good few years off though.

What kind of stumbling blocks would I come across with this adverse credit - specifically when forming a LTD company and opening a business bank account? Before you ask, using my wife are parents is not an option for opening either.

I am also registered as a sole trader with the tax man as some of the photography and web design work I do in my spare time I started to get paid for (wanted to keep the tax man happy!) - so I'd like to use the LTD company for that work too; so would rather not go for an umbrella company. Also, when I first started contracting I had a hellish time with the umbrella comnpany before I started my own LTD. My old LTD was closed back in 2002.

Any advice you could give me would be much appreciated.

Cheers.,

[cojak]

Moved to a place where you can get specialised help, stegsie

[Clare@InTouch]

Being a director should be fine as long as you're not banned, but the company bank account could be more difficult. I would suggest you talk to various banks before you open a company, just to ensure you're not left with a company and no bank account.

[SueEllen]

The Halifax have a treasury account which Limited companies can use. The account is passbook operated so you can't get an overdraft on it.

Halifax - Treasurers Account

Apparently they push you to have a full business account with credit checks which you wouldn't pass, but if you stick to your guns you can get it.

Also you probably would need to pay for business things from your personal account if you need to use a cheque or card immediately but you can get the business to reimburse you.

[northernladuk]

You will also be ineligble to work for the banks and any financial company. You will also have a sweat on when you come to any BC or SC type work as well. I think we all agreed that bad credit alone isn't enough to fail SC but it certainly causes a problem.

You are also up against experienced contractors so normally have to try taking anything to get going and get some experience again.

That leaves a pretty small market of work. Are you sure contracting is a good idea when you are looking at a small market in a bad time?