Currently under an Umbrella, time for Limited Company

[miketempest]

Hello,

I have been under an umbrella company for my first 2 months of contracting life as I wanted to make sure I enjoyed contracting life before moving forward and setting up a limited company.

Anyway, I am now at the stage where I want to setup a limited company, but want to try and have as much help as possible with the management of it. Thinking of using a service like Clear Sky Accounting.

Just wondered if anyone has any advice on companies like this or ones to go for or avoid. I know it's an extra cost, but for someone like me whos new to the game of keeping accounts and that I want to make sure I don't get stung by tax, etc. with the least amount of work possible until I understand the ins and outs.

Cheers
Mike

[Alias]

if its your only contract under an umbrella then be aware that once you moved to a limited it will be seen as a permanent position and you will have to pay back expenses...

for accountancies, try doing a search or look to the stickies as it has been asked many times before

[northernladuk]

Time to fine tune your searching skills. Firstly there is a sticky with recommended accountants at the top of this part of the fora..

Secondly if you look at how to search in the FAQ you will see Clearsky has been discussed a few times, as has all the other options so best that you read through these first.

Just coming on with 1 post and linking one of the less mentioned providors makes you look like you are advertising and not a serious question as well IMO.

[miketempest]

Time to fine tune your searching skills. Firstly there is a sticky with recommended accountants at the top of this part of the fora..

Secondly if you look at how to search in the FAQ you will see Clearsky has been discussed a few times, as has all the other options so best that you read through these first.

Just coming on with 1 post and linking one of the less mentioned providors makes you look like you are advertising and not a serious question as well IMO.

Or it could be that I am just new to the forum and trying to find out about services available. Just because someone is new to a forum and doesn't have prior experience of dealing with this situation, doesn't make there question any less serious. These sorts of responses make people less likely to use forums like this, as you just get met with negativity from the off. The search facility on this forum is pretty awful too unless you know specifics of what terms are related to what you want to find out.

I have now seen the sticky and will take a look at that.

[miketempest]

Thanks @Alias

[Scrag Meister]

I'm with ClearSky at the moment, but they are quite expensive compared with some.

I will be looking to move, at some convenient juncture.

[LisaContractorUmbrella]

Not sure that 2 months is long enough to decide that contracting's for you but your decision. With regard to choosing an accountant - you should make sure that you are as well informed as possible on your responsibilities as a company director; you cannot rely on an accountancy firm to teach you. You need to consider your IR35 status, PAYE obligations, VAT obligations, what is required in terms of payments for corporation tax, filing dates etc etc etc. If you don't take the time to learn all this you won't know if your chosen accountancy firm is giving you good advice or bad.

NLUK - I am also skeptical about 1st post of this type - pretty clumsy attempt though

[miketempest]

I'm with ClearSky at the moment, but they are quite expensive compared with some.

I will be looking to move, at some convenient juncture.

@Scrag Meister: Any thoughts on the service they provide? Any problems? Who you thinking of going with?

[Jessica@WhiteFieldTax]

I'm with ClearSky at the moment, but they are quite expensive compared with some.

I will be looking to move, at some convenient juncture.

As some one who works "mid market" price, I'd say don't worry too much about cost. The difference between the most expensive in the market,and the least expensive only works out to about £2 a day - and thats at the maximums so for most people it would be less off a differential.

Shop around on service and feel, but really the cost differences in the market don't justify making price the criteria IMV.

IOW, Scrag Mesiter, if ClearSky's offering is working otherwise for you, then don't rock the boat?

[Maslins]

Not sure that 2 months is long enough to decide that contracting's for you but your decision. With regard to choosing an accountant - you should make sure that you are as well informed as possible on your responsibilities as a company director; you cannot rely on an accountancy firm to teach you. You need to consider your IR35 status, PAYE obligations, VAT obligations, what is required in terms of payments for corporation tax, filing dates etc etc etc. If you don't take the time to learn all this you won't know if your chosen accountancy firm is giving you good advice or bad.

I'd agree with much of the above. Bear in mind as director of your own Ltd Co, you'll be responsible for the finances/tax, not your accountant. Accountants are of course there to help, that's what people pay them for.

There are some accountants who offer a kind of "we do everything for you" service, but IMHO that's not a good idea. You can't pass the responsibility to your accountant. They'll either be running every little question/decision by you, in which case it won't save you any time at all, or they'll be making a lot of judgment calls on your behalf, eg guessing what that £100 you spent at company X was for, which isn't a good idea.