Ltd Company Set up, and Nearly Starting

[tarbera]

Outside IR35 Contract signed with Agency

" Outside IR35 Contract signed with Agency"

Super did the agent tell you this.?

[dyven]

" Outside IR35 Contract signed with Agency"

Super did the agent tell you this.?

No!!, I checked the Contract myself against the main IR35 points i.e. substitution, control etc, and then got it checked over from an expert as well which was included as part of my ltd company set up charge by a formation company.

Now I must say, I feel a lot of hostility around my decision to possibly not employ the full time services of an accountant. My comment about getting family members around the dinner table was tongue in cheek, but I dare say the odd question will be asked now and then if required alongside possibly the odd questions on these type of forums if they have not been asked and answered already.

Personally, I feel having worked in the finance sector in both IT and Pensions feel I have the basics to do the main tasks required on a regular basis to keep the business in check and meet all deadlines for taxes and submission, hence I cant justify spending a fixed monthly account towards an accountant who I may not see for months at a time anyway. Some of the posts in this forum seems to refer to the comparison to the daily rate you can charge as a contractor and the potential charge of an accountant, But to that I say even a days salary is something that you still work for and could possibly take years for you to build up to that rate. Hell I still remember working for £2.16 an hour!!!!!! on my first job after my GCSE's.

Granted I will no doubt employ the services of a professional once a year or possibly more for general tax planning advice but after that will feel more than comfortable dealing with it on my own.

Personally in my field I use a lot of IT forums to answer queries that I have in my day to day role, but I also give something back and answer more queries than I generally ask.....and I dare say there are a lot of accountants out there doing the same in there own fields.

[dyven]

thanks cojak,

book looks worth it, just bought it. hope you get your kickback

I can see that you've decided not to bother with an accountant.

Brave man.

Unless you already know everything, buy the latest version of Finance on a Beermat: Amazon.co.uk: Mike Southon, Chris West, Stephen King, Jeff Macklin: Books

That will tell you what you need to know re Corp tax (don't spend it, it's not yours. etc)

And I use and like FreeAgent, unless you've got macros and lookups in your Excel spreadsheet that will help with reconcilliation of invoices to income and the like.

But it sounds like you're on the right track.

[cojak]

thanks cojak,

book looks worth it, just bought it. hope you get your kickback

No kick back, just a satisfied reader.

And there are regulars on here who don't use accountants, so you're not alone.

Post in Accounts/Legal and they'll help, I'm sure.

(and I'd like to remind others to mind their manners in this forum)

[scooby]

And I use and like FreeAgent, unless you've got macros and lookups in your Excel spreadsheet that will help with reconcilliation of invoices to income and the like.

Is FreeAgent well worth the £30pm (Incl VAT)? I'd love some software to track my bank accounts and invoicing etc, but I already pay my accountant a reasonable figure, and my invoices are done in Word...

(Queue accountant guiding me re software that may be useful as he knows I wont be getting rid of him!! )

[Kugel]

In my opinion cloud accounting is pointless. Because none of current providers do annual accounts. And over a few years you will end up paying fortune.

I recommend free "Basic PAYE tools 2012" from HMRC for payroll.

And get "DIY accounting" for £16.99 + VAT (or £26.99 + VAT with payroll) for your day to day accounting and annual accounts. You will need to buy a new one every year, but it is very cheap.

Also Crunch now provides free cloud accounting (with somewhat limited functionality). You can also give it a try.

[scooby]

In my opinion cloud accounting is pointless. Because none of current providers do annual accounts. And over a few years you will end up paying fortune.

I recommend free "Basic PAYE tools 2012" from HMRC for payroll.

And get "DIY accounting" for £16.99 + VAT (or £26.99 + VAT with payroll) for your day to day accounting and annual accounts. You will need to buy a new one every year, but it is very cheap.

Also Crunch now provides free cloud accounting (with somewhat limited functionality). You can also give it a try.

Dont forget to give us your name so you can get £25 referral!!

[Platypus]

You are running a business now. Don't involve your family and just do it properly. They don't know your business to the level they should and can't give you the impartial advice you need. Maybe in future years this could be a way for you but not at start up. You need solid support or it is going to cost you.

Humm, culturally we may be alone in this. Networking with family doesn't seem to have done the large number of Asian and Chinese run family businesses any harm. I can't agree with you you, NLUK, on this point. Especially as many accountants don't have a clue about business.

Having said that, personally I wouldn't have someone in the family do my accounts as I prefer to keep financial details confidential.

[Kugel]

Still to do:
• Awaiting UTR from HMRC Via companies house (which should be automatic I think) so I can register with:
• HMRC for Corporation TAX, Flat Rate VAT, and PAYE.
• Sign up with PCG including Professional Indemnity Insurance (Or will I be better off getting this from a separate broker!!)

Before registering for PAYE make sure it makes sense to do it this tax year.

Get a quote from QDOS for Professional Indemnity Insurance. They seem to be cheapest at the moment.

[dyven]

Hi All,

Thanks for your advices to date. It doesnt seem as scary making the move into contracting when there's a load of you contracting out there in the real world.

Think the most cost effective option was to take the PCG PLus Membership for £220 which seems like a good deal with a lot thrown in alongside the qdosconsulting Proffesional Indemnity Insurance for £147.

Only one think left for me to think about is what expenses I will be claiming and what is allowable, my registered address is from home, and am setting up a home office, desk etc as I will need to work from home now and then.

So I am thinking allowable expenses will be:

• New Laptop and Printer
• Company Stationary
• Company Formation Charges
• Any Applicable Accountancy Charges
• PCG Membership and QDOS Professional Indemnity
• Mileage at approved rates (45p a mile) to/from my client site
• Banking Charges
• Training Courses & Exam Certification
• Company Website Design/Hosting/Domain Name registration

Are there any other expenses I can claim, I read about claiming for meals whilst your on clients site but Ill be there pretty much for 6 months on my first gig and it will be good old home made packed lunches most of the time, Will I be able to claim the odd trip to the chippy or the sandwich shop when the lunch box isnt tagging along with me. Or can claim a nominal amount for unreciepted lunch expenses.

And what are HMRC like at the moment in respect of claiming for expenses for your home office I read somewhere about something notional about £3 a week, is this right or was this a typo?

Finally which one of the above expenses will give rise to the submission of the P11d

Thanks in advance