Newbie needs your help . . .

[The Great Gonzo]

Hello all seasoned contractors.

I've recently realised the long-standing error of my permie ways and I've decided to take the plunge into the world of IT contracting.

Having done this and started some digging into what the hapless starter needs to do, it seems there's a myriad of companies ready and waiting to relieve newbies of their cash with offers of making life simple for the contractor.

Now, I may be a newbie, but I've been around long enough to know that you don't listen to the advertisements and word of mouth is better than any corporate promotional material.

So, what to do? Umbrella or DIY Ltd Co? Who's REALLY going to save me money and make me the god of tax efficiency? By the way, I'm not interested in any weirdy offshore arrangements before we start - in my opinion that's just a godawful tax investigation just waiting to happen.

So, the floor's open . . . . What to do? Any recommendations on:
a/ Company structure - Ltd Co or LLP?
b/ Good tax advice/accountant with reasonable fees?

Look forward to hearing from you - I'm sure you're all satisfied with your own personal arrangements (Otherwise why would you have them?) so I'm sure it'll be an interesting thread. What I'm hoping to achieve here is a set of principles that any other Newbie contractor can follow, hopefully with a few contacts to start them off in the world.

Looking forward to your replies,

The Great Gonzo (Yes, I know, a muppet).

[malvolio]

The first thing any newbie should do when visiting these boards for help is learn to use the search function.

When you've mastered that you will references to the First Timer guides. That's the second thing to do - read all three of them, carefully.

The third thing, also aided by your mastery of the search function, is talk to one of the accountants we usually reccomend, and pick whichever you're most comfortable with, and use them for technical advice.

The fourth thing is, armed with all the above, is ask sensible questions. Until you do, you won't get sensible answers...

Just to pick up a couple of points you ask though. LLP is a partnership of self-employed people and not usually appropriate for a one man band, but YMMV. Your LtdCo will save more tax more safely than any other option. As you seem to realise, unless your'e a total hero (or totally thick) now is not the time to start any other scheme other than a brolly. (And again, using search, you might find a sticky as to why. Or even one discussing the difference between LtdCo and Brolly)


As for your last point, we may have beaten you to it:

First rule of contracting: you're on your own, you have to do things for yourself.

Second rule of contracting: becuase of the first rule, some people are reluctant to give help at all. Some only pretend to and send you in the wrong direction. Some are selling things they shouldn't be. Many are reluctant to give away hard-earned knowledge to people who appear not to have observed the first rule. One or two make you think first.

Third rule of contracting: time is money

And Malvolio's contentious fourth rule: IR35 is largely voluntrary, always start from the position it does not apply.

OK, homework set, see you tomorrow...