New Contractor seeks Urgent Help!

**Churchill** · 25 April 2006, 09:14

Cue Simon or Darren...

Let's see who's the quickest and most sober...

**DaveB** · 25 April 2006, 09:17

For the sake of £50 a month I wouldn't bother trying to do it myself.

Work out how much time you will spend doing it, what your hourly rate is and then see if you are cheaper than an accountant. I very much doubt you will be.

And if your accountant screws up at least you have some comeback, if you screw up there's nothing you can do about it.

**malvolio** · 25 April 2006, 09:32

No no, he's quite right. Why pay someone when you can ask on here for free and get detailed answers...?

Shame they won't be the right ones though.

**Fleetwood** · 25 April 2006, 09:35

Totally agree with Dave B.
You could change the oil on your car, but you take it to Halfords and pay someone else to do it. It's the same principle with an accountant.
Take some time to relax, go down the pub, watch the footy, see your mates, chat a few birds up, avoid the prozzies on the way home.
That's what I do of an evening.

**PerlOfWisdom** · 25 April 2006, 09:38

I think I remember Xoggoth saying he does most of his own accounts?

**The Master** · 25 April 2006, 09:53

Agree with Fleetwood. Get one of the decent IT contractor accountants on the case (Darren, SJD) and use the time saved more productively.

**lollypop** · 25 April 2006, 10:14

IR35 - No Confusion

With regards to point 4, no matter what your contract states the HMRC will go off your working practises now. So you can have an agency write what they like in your contract, but if your actual working practises prove otherwise when investigated and they paint you within IR35. You will be stung along with the rest of them.

If you ask me, it's not worth the risk. If your within IR35 either pay the right level of tax like the rest of us or when you fall ill and need help call 911....

Originally posted by css_jay99

Hi,

I have just started my first contract in IT after working full time for the last 8 years as an Oracle senior analyst programmer. Before that I was a part qualified accountant working generally with consolidated accounts. I also worked on small company accounts so i guess my comprehension of accounting in general at the moment is rusty but not too bad.

I have set up a limited company so that I can work through.

Unlike most of my contractor friends who are either using umbrella companies or Limited companies & then employing accountant's services, I want to do all the accounting myself. Being a skin flint, I dont see a reason why I should pay san accountant for something I can do myself (after getting to grips) especially having trained previously as an accountant.

reason I want to do this is so that I have (unlike my friends) a better idea of in & outgoings.

I have been contracting for the last 2 months and not even paid myself yet bcos i still have to sort out the payroll aspect of things first, so i guess i have to come to a resolution. I am currently using Sage Accounts to manage my bookkeeping.

My queries are:-

1) Are there other contractors in the same boat trying to do things themselves i.e. bookkeeping , payroll ..... . what accounting software are you using ?

2) Where on the net can I get more info if I want to manage things myself

3) If i have to go via an accountant (hopefully not) for year end related stuff, any recommendations of accountants/services to use. I to a certain extend rather services where I do the bookkeeping and they do the payroll .... BUT generally not handle everything

4) IR35 - I will generally be working on similar contracts like most IT contractors i.e. going on client site to work, getting paid a daily rate, and I guess like most contractors carrying out work on your own time if needed to meet deadlines.

Am I affected by IR35 in the scenario above or these are the things that need to be verified by the accountant from my contract (afterall its in the best interest of the agencies to word contracts which bypass IR35 status).

5) looking as well for Good cheap accounting services if all else fails. ones that do online services would be even better

Thanks for taking the time to read this

css_jay99

**martinb** · 25 April 2006, 10:59

Diy

I do most of my accounting myself, but use an accountant for year end and corporation tax returns. Payroll is a doddle - HMRC give you a CD in the Employers Pack where you simply enter tax code and gross pay and it works out employer and employee NI as well as income tax. Takes all of about 15 minutes per month (if that) to do payroll. The HMRC info packs are actually reasonably decent.

I also do my own VAT returns - also very straightforward if your circumstances are simple (ie no complicated overseas stuff). VAT takes about 15 minutes a quarter. I also use flat rate VAT more because it saves me money than because its easier.

I don't use any accounting software - just a spreadsheet - which I provide to my accountant at year end.

Like you, I am reluctant to pay someone to do what I can easily (and quickly) do myself. A few hours upfront reading the HMRC guides, thereafter it consumes almost negligible time.

**OrangeHopper** · 25 April 2006, 11:54

I do my own accounts, bar year end when I use SJD. May be expensive approach but using them gives me peace of mind and feedback in case I've done something wrong.

Many of the diy contractors have probably been at it for more than 10 years having started out before the explosion in accountants et al providing taylored services.

If I was starting out now, and only intended to do long term contracts, I would use a contractors' accountant. You fill out the supplied spreadsheets and they worry about the complicated stuff.

New Contractor seeks Urgent Help!