My newbe understanding of VAT

[gabox01]

Thanks for the great answers.
Most likely i will utilize flat rate scheme in my first year, and think about expenses after.

[speling bee]

Thanks for the great answers.
Most likely i will utilize flat rate scheme in my first year, and think about expenses after.

For the love of God, spend an hour sat down with an accountant who specialises in contractors.

[gabox01]

For the love of God, spend an hour sat down with an accountant who specialises in contractors.

I will do Sir, just want to understand the basics before that.

[TykeMerc]

I will do Sir, just want to understand the basics before that.

If you speak to an accountant he/she can answer all of the questions you've posted in a matter of minutes (assuming you listen and aren't just a trolling sockpuppet). The questions you have ARE the basics.

[gabox01]

If you speak to an accountant he/she can answer all of the questions you've posted in a matter of minutes (assuming you listen and aren't just a trolling sockpuppet). The questions you have ARE the basics.

I have an accountant, but she doesn't know anything about taxation outside of HUN.
I will definitely do business with SJD after i have a signed contract. I don't have that yet.

I guess it's not appropriate to ask questions from them free of charge.

[speling bee]

I have an accountant, but she doesn't know anything about taxation outside of HUN.
I will definitely do business with SJD after i have a signed contract. I don't have that yet.

I guess it's not appropriate to ask questions from them free of charge.

They will very probably give you an hour of their time first for free. Please take it.

[Brian Potter]

I will definitely do business with SJD after i have a signed contract. I don't have that yet.

You need to do business with an accountant BEFORE you have a signed contract. Takes no time to set up a Ltd Co but does take a few weeks to set up an accountant, PAYE, Flat Rate VAT, business bank AC etc. Agents will expect you to hand over such details of your Ltd Co within days of a contract offer, so you need to be ready.

My advice? Go umbrella for your first gig and use the time to research all the ins and outs of operating as a Ltd Co. If you like what you see then set up your Ltd Co, accountant, PAYE, VAT etc. whilst still working under the umbrella. If you get an extension then use the Ltd, but if you get benched then at least you have the Ltd ready for the next gig. Simples!

Yes there is SJD, but there is also Nixon Williams. Whilst I was under an umbrella I set up my Ltd Co towards the end of the gig and took advantage of NW's 3 months for £150 to carry me through bench time to the gig I have now, fortunately my bench time was around 5 weeks...not sure if NW do that offer any more but it's worth asking them.

[gabox01]

You need to do business with an accountant BEFORE you have a signed contract. Takes no time to set up a Ltd Co but does take a few weeks to set up an accountant, PAYE, Flat Rate VAT, business bank AC etc. Agents will expect you to hand over such details of your Ltd Co within days of a contract offer, so you need to be ready.

Well, I asked SJD and they said it takes 3 hours for them to create a limited, and it takes 7-10 days to open a bank account. I'm not sure about the rest, but it seems there is no reason to hurry with these things.

My advice? Go umbrella for your first gig and use the time to research all the ins and outs of operating as a Ltd Co. If you like what you see then set up your Ltd Co, accountant, PAYE, VAT etc. whilst still working under the umbrella. If you get an extension then use the Ltd, but if you get benched then at least you have the Ltd ready for the next gig. Simples!

I will never go umbrella. It sucks even more than what i tax currently in Hungary.

[SpontaneousOrder]

If you don't have your bank details ready in time then you'll just miss an invoice and get paid double next time.

It does take a while to actually get registered for VAT etc (couple of weeks each).

[Brian Potter]

I will never go umbrella. It sucks even more than what i tax currently in Hungary.

I doubt that very much.