First contract - another permie newbie!

[mitchell888]

Hi all!

Landed my first contract, coming from permie land. Outside IR35, around 500 P/D. 6 months initial, 1 year renewal potential.

I'm over the moon, and of course all the usual feelings of being underprepared and imposter syndrome is kicking in already!

I've done so far:

- Accountant engaged
- LTD setup
- Business bank setup + FreeAgent linked
- PI/PL policy taken out
- Contract with recruiter signed
- Contract pending from client
- IR35 review pending contract
- Worked out rough gross and will set up vanguard SIPP to keep corp tax down in time

Of course the next steps are mainly for my accountant to help with VAT registering etc - but I'm finding already everything a bit overwhelming, does this go away quick enough with a few months time?

I've absolutely no idea how to keep records, receipts, pay myself dividends and the like. Am I stressing unnecessarily about things I employ an accountant to help with?

Hoping for some words of wisdom from the elite!

[malvolio]

Hi all!

Landed my first contract, coming from permie land. Outside IR35, around 500 P/D. 6 months initial, 1 year renewal potential.

I'm over the moon, and of course all the usual feelings of being underprepared and imposter syndrome is kicking in already!

I've done so far:

- Accountant engaged
- LTD setup
- Business bank setup + FreeAgent linked
- PI/PL policy taken out
- Contract with recruiter signed
- Contract pending from client
- IR35 review pending contract
- Worked out rough gross and will set up vanguard SIPP to keep corp tax down in time

Of course the next steps are mainly for my accountant to help with VAT registering etc - but I'm finding already everything a bit overwhelming, does this go away quick enough with a few months time?

I've absolutely no idea how to keep records, receipts, pay myself dividends and the like. Am I stressing unnecessarily about things I employ an accountant to help with?

Hoping for some words of wisdom from the elite!

There's a guide over there. --> Read that first...

[andymalory]

Welcome!

One important thing missing from your list is to ask and obtain your SDS.

Then, once you've started, ensure your activities reflect that SDS as the contract in and of itself won't stop an investigation.

On the accountant and records things, ask your accountant lots and lots of questions, don't be afraid to ask for a second opinion and if at any time you are unhappy, move so you get the answers you need and want. Too many contractors get an account for paperwork and advice, but not all accountants see advice as their job. They may have tax advisors on hand for this.

[mitchell888]

Welcome!

One important thing missing from your list is to ask and obtain your SDS.

Then, once you've started, ensure your activities reflect that SDS as the contract in and of itself won't stop an investigation.

On the accountant and records things, ask your accountant lots and lots of questions, don't be afraid to ask for a second opinion and if at any time you are unhappy, move so you get the answers you need and want. Too many contractors get an account for paperwork and advice, but not all accountants see advice as their job. They may have tax advisors on hand for this.

Thank you! SDS from the end-client I assume?

This is the main reason I posted the list, as I'm sure there were things I'd be missing.

[Lance]

don't save into a SIPP yet. Save that money in the company bank. You need a warchest.
You can always pay a lump sum into SIPP at year end if the finances are suitable.

As for VAT. The threshold is £85k so you don't need to do it right away (6 months at £500 p.d. is less than the threshold). But if you do want to do it, just make sure it's before first invoice. If the agency does self-billing you'll need to load the VAT details into their system.

[mitchell888]

don't save into a SIPP yet. Save that money in the company bank. You need a warchest.
You can always pay a lump sum into SIPP at year end if the finances are suitable.

As for VAT. The threshold is £85k so you don't need to do it right away (6 months at £500 p.d. is less than the threshold). But if you do want to do it, just make sure it's before first invoice. If the agency does self-billing you'll need to load the VAT details into their system.

Fair point regarding the SIPP. I'll cancel that one. You're dead right regarding warchest, it could all go belly up in a month or two of work and that money would be stuck in a SIPP, useless. Thank you.

[lecyclist]

Concerning registering for VAT. Would be useful for you to read up on this topic, also gives information on the Flat Rate VAT scheme.

https://www.contractoruk.com/vat

If you are planning to purchase significant company assets (laptops, servers, phones) then this will be helpful.

[jmo21]

Hi all!

Landed my first contract, coming from permie land. Outside IR35, around 500 P/D. 6 months initial, 1 year renewal potential.

I'm over the moon, and of course all the usual feelings of being underprepared and imposter syndrome is kicking in already!

I've done so far:

- Accountant engaged
- LTD setup
- Business bank setup + FreeAgent linked
- PI/PL policy taken out
- Contract with recruiter signed
- Contract pending from client
- IR35 review pending contract
- Worked out rough gross and will set up vanguard SIPP to keep corp tax down in time

Of course the next steps are mainly for my accountant to help with VAT registering etc - but I'm finding already everything a bit overwhelming, does this go away quick enough with a few months time?

I've absolutely no idea how to keep records, receipts, pay myself dividends and the like. Am I stressing unnecessarily about things I employ an accountant to help with?

Hoping for some words of wisdom from the elite!

You seem to be doing pretty well so far, don't be so hard on yourself!

And congrats!

[andymalory]

Thank you! SDS from the end-client I assume?

This is the main reason I posted the list, as I'm sure there were things I'd be missing.

Yes indeed - from the end-client.

[andymalory]

You seem to be doing pretty well so far, don't be so hard on yourself!

And congrats!

Here here...