Any tips for a contracting noob

**mudskipper** · 4 April 2016, 18:03

Didn't you miss -

Get contract reviewed

Make sure you read up about IR35 (guides over on right)

And maybe think about joining IPSE

https://www.ipse.co.uk/what-we-do

**northernladuk** · 4 April 2016, 18:16

I know I can ask my accountant this stuff but interested in getting some advice from other contractors.

THANKS!

Never rely on other contractors to help you run your business. We don't know and don't care. Do it properly by researching the guides and speaking to your accountant. When you understand the basics then come back and ask us maybe. What may seem like a simple question can be a hugely convoluted answer that is linked directly to your personal situation. You need to understand it, not just be told.

At best go ask an accountancy board, this is just for contractors to thrash about and hope an accountant or ASB, TCP, WIB, JB and if you are unlucky TF, will come and guide us.

**northernladuk** · 4 April 2016, 18:17

P. S. Your think this is a bad year... Wait till you hear what's coming in 2017..muahahaha

**AnotherGuy** · 4 April 2016, 18:18

Originally posted by genius View Post

I have read an 11k salary is recommended for 2016/17.

Is it?

I'm going with £8,060 for the new year, down from £10,600

**northernladuk** · 4 April 2016, 18:19

Originally posted by AnotherGuy View Post

Is it?

I'm going with £8,060 for the new year, down from £10,600

My point made perfectly.

And OP. Check out the search method as described in the welcome section using Google. Everything you want to know has been asked many times over.

**genius** · 4 April 2016, 19:28

Originally posted by AnotherGuy View Post

Is it?

I'm going with £8,060 for the new year, down from £10,600

If you're eligable for employment allowance... We're talking about a few hundred quid so who cares tbh but anyway:

If you pay yourself a £11,000 salary, your company’s £398.54 Employers’ NI bill will be refunded thanks to the EA.
No Income Tax is payable on either salary, as the Personal Allowance for 2016/17 is £11,000.
By paying yourself £2,940 more than the £8,060 salary level, your company also saves £588 in Corporation Tax.
However, you also have an additional Employees’ NI bill to pay of £352.80.
So, you will be better off to the tune of £235.20 by taking a £11,000 salary in 2016/17, compared to a £8,060 salary, assuming your company is eligible to claim the EA.

**AnotherGuy** · 4 April 2016, 19:31

Originally posted by genius View Post

If you're eligable for employment allowance... We're talking about a few hundred quid so who cares tbh but anyway:

If you pay yourself a £11,000 salary, your company’s £398.54 Employers’ NI bill will be refunded thanks to the EA.
No Income Tax is payable on either salary, as the Personal Allowance for 2016/17 is £11,000.
By paying yourself £2,940 more than the £8,060 salary level, your company also saves £588 in Corporation Tax.
However, you also have an additional Employees’ NI bill to pay of £352.80.
So, you will be better off to the tune of £235.20 by taking a £11,000 salary in 2016/17, compared to a £8,060 salary, assuming your company is eligible to claim the EA.

Sorry to give you the bad news, but there is no EA next year for one man companies

**TheFaQQer** · 4 April 2016, 19:32

Originally posted by genius View Post

Any tips for a contracting noob

All your questions should be asked here.

**TheFaQQer** · 4 April 2016, 19:33

Originally posted by genius View Post

If you're eligable for employment allowance... We're talking about a few hundred quid so who cares tbh but anyway:

So, you will be better off to the tune of £235.20 by taking a £11,000 salary in 2016/17, compared to a £8,060 salary, assuming your company is eligible to claim the EA.

So, is your company eligible to claim the EA?

Any tips for a contracting noob