New to contracting

[welshy213]

Hi guys,

Good site and hoping I can pick your brains for some friendly advice.

I am new to contracting, just ending my first contract via an umbrealla company, and have signed a new contract for another company and also setup my LTD company.

I have a 3 month contract at a rate of £260/day plus out of hours/overtime.
Is the a place/resource that can point me in the direction of what I need to know to make sure I dont get hit with a hugh Tax bill at the end of the year, plus also maximising my profits.

I have yet to setup with an accountant but contract is not due to start until 24th.

Please help guys.

Thanks

John

[dmini]

This is the gentle reply.
Check your IR35 status. There are various people who can do that - SJD is one. (I failed the check ). Waiting on that is the result as to whether you pay dividends for a major amount of the money(saves lots of tax ), or just PAYE ( where you cannot avoid paying Hector lots ). Your accountant should be able to advise that side - get one quickly & use them - it should be part of what you pay them for. There are two who will pick up this thread soon, Darren & Simon, who can give you more info! They are both used by contractors on this forum.

[malvolio]

And standard advice applies - read the guides, the one here and the one on www.pcg.org.uk, join the PCG anyway and also have a look at the sticky thread at the top of this board about the differences between ways of working. And do NOT use a composite until we know what the tasxman has got planned for them.

dmini - may I ask what did your contract fail on?

[dmini]

This is why it failed!

Quote from Simon SJD -

there is too much control, the need for personal service, no financial risk - in short, a typical (insert agency name) contract !

[malvolio]

In other words, nothing that couldn't have been negotiated away, except that doing so would have lost you the gig. Who was the agency - PM if you don't want to name names - and I might invite some of my more influential friends to ask them why they are costing their suppliers 20% extra tax for no reason...

[welshy213]

Cheers Guys,

As i said I am clueless when it comes to this, like everybody I would like to be able to keep as much as what I earn as possible but not with the risks of getting done, dont think the extra couple of quid is worth it.

I assume what you mean is to pass my contract onto the accountant and he should be able to tell me if I am inside or out of IR35.

Can anyone reccomend anyone good that they use and a general rule of thumb on prices.

Thanks

John

[Pondlife]

Simon at SJD
Darren at 1st accountancy

others include Nixon Williams

Will cost between £60 - £100 per month

[welshy213]

Cheers Pondlife,

Costs are what I am currently paying for an Umbrealla company so about what I wa hoping they would be.

Does any one here have anything good/bad points to say about theses guys, would be good to go with a companie that everyone knows and trusts.

Cheers

John

[The Lone Gunman]

I use Darren. I think Malvolio uses SJD, I know a few do.

Both get the thumbs up round here.

You will find them in the members list. Drop them both a line and they will sell you their services. Just watch em go.

[welshy213]

Thanks Gunman, will drop them a email to get some more info, hope everything is no so scary once this is all setup.

Thanks

John