Originally posted by Southern Fairy
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Sorry no fish here.
Yes paid via DD and yes I am the owner of the Ltd company.
Indeed this is the only reason for the business account and the only money in their is for liabilities.
Guys its pretty easy to live in hindsight here as many are more versed in how to manage accounts etc. If my accountant got his bit right then my money for liabilities in the account would have floated perfect.
It does not matter if the company retains any of the profits to FLOAT the account for mistakes like this, as I can re invest the money back into the business if something else goes wrong again in the future or just not take any dividends until the balance is null.
I always keep a float of 7k for emergencies in my personal account if I am out of work etc. The point was that this was bad timing if you read the post #1.. Remember I had just bought a house and got married. Contract at the time was for 12 months and termination on both sides is 10 weeks.
I have learned so much ref "what" my liabilities are and how they are calculated. Yes I knew of all the amounts coming out and I had challenged them in December 2011 regarding the lack of funds avail for these transactions due at a later date. They advised I was waiting on a rebate from HMRC and also some expenses had not been processed yet. Turns out the rebate of 1k from HMRC was not attributable to the 4k+ I was down..
Yes I admit naively I did accept their response
but then again this is why I pay a professional to do the work for me. Where I work my client does not double check everything I do as that would be a mere waste of man hours and shows a lack of trust.
The accounting firm is good. They have a linked API to my account daily and adjust for any expenses in real time. At your place of work as some of the other contractors you work with if they understand their accounts. I did the same at mine and I just got blank expressions back. Perhaps the more old and bold on here take the high pedestal and perhaps should not judge any one new here trying to gain some advice.
I do appreciate some of the advice here and responses. I will check out the war chest now
Yes paid via DD and yes I am the owner of the Ltd company.
Indeed this is the only reason for the business account and the only money in their is for liabilities.
Guys its pretty easy to live in hindsight here as many are more versed in how to manage accounts etc. If my accountant got his bit right then my money for liabilities in the account would have floated perfect.
It does not matter if the company retains any of the profits to FLOAT the account for mistakes like this, as I can re invest the money back into the business if something else goes wrong again in the future or just not take any dividends until the balance is null.
I always keep a float of 7k for emergencies in my personal account if I am out of work etc. The point was that this was bad timing if you read the post #1.. Remember I had just bought a house and got married. Contract at the time was for 12 months and termination on both sides is 10 weeks.
I have learned so much ref "what" my liabilities are and how they are calculated. Yes I knew of all the amounts coming out and I had challenged them in December 2011 regarding the lack of funds avail for these transactions due at a later date. They advised I was waiting on a rebate from HMRC and also some expenses had not been processed yet. Turns out the rebate of 1k from HMRC was not attributable to the 4k+ I was down..
Yes I admit naively I did accept their response
but then again this is why I pay a professional to do the work for me. Where I work my client does not double check everything I do as that would be a mere waste of man hours and shows a lack of trust.The accounting firm is good. They have a linked API to my account daily and adjust for any expenses in real time. At your place of work as some of the other contractors you work with if they understand their accounts. I did the same at mine and I just got blank expressions back. Perhaps the more old and bold on here take the high pedestal and perhaps should not judge any one new here trying to gain some advice.
I do appreciate some of the advice here and responses. I will check out the war chest now
Not sure if I'd be happy with £7K only = about 3/4/ months living at a push.
First thing I did when I got back to contracting is build up minimum of 6 months personal money. Currently up to about 12 months worth but be happy when its closer to 2 years.
That way I dont crap myself when contract ends or get pressure to take stuff in locations I dont want.
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