New contractor question...easy?!

[tobym]

Hi all,

I started contracting before Christmas, all going swimmingly so far...I am now wondering about how best to proceed in the medium- to long-term?

I'm currently working through Parasol (and, for the record, no complaints so far!) but know that I could save myself some money by setting up as a limited company. I'm wondering if anyone could give me any tips on the most efficient way of getting this done? I talked to an accountant (who specialised in - fleecing - contractors) last week who wanted £120/month, which seemed a bit steep, given that a couple of people I know have told me that, with a bit of application, I could largely survive without one.

What's the best way to set up a company? Do I need the regular services of an accountant, or should I be able to manage most things myself?

Apologies if this has been covered ad nauseum, feel free to point me at relevant threads - I couldn't come up with a search term that didn't bring back a lot of very disparate information!

Thanks in advance,

Toby

[Burdock]

Hi mate,

I had the same questions as you a few weeks back. I'm going through www.nixonwilliams.com they handle it all - inc. company setup.
£68 per month + VAT.

Alan from Nixon Williams posts here regularly.

Good luck.

[dotnetter]

£120 month

No wonder he specialises in fleecing contractors

Unless you are an accountant yourself then you definately need a fukk time one, just to balance your books and advise your on tax/vat returns etc.

Mine £71 per month inc vat and it's been invaluable

[gingerjedi]

Have a look on the Accounting/Legal section there’s loads of info on there, I'm thinking of using Nixon Williams myself but the distance worries me as I want a table to bang if things go wrong! Umbrella's will be out off business come April so time to move.

[tobym]

Cheers everyone! I shall go and check the other section now.

Have a look on the Accounting/Legal section there’s loads of info on there, I'm thinking of using Nixon Williams myself but the distance worries me as I want a table to bang if things go wrong! Umbrella's will be out off business come April so time to move.

Eh? Why's that then? It's just a company isn't it, they (Parasol) aren't doing anything odd are they (in terms of strange accounting practices), why would they not be around?!

Toby

[Spacecadet]

yup - going through parasol means you pay full tax and NI on your earnings, the only way to pay slightly less tax with them is through claiming expenses and even then they do appear to be very above board with how those can be claimed

[Bright Spark]

I've managed my own ltd company by myself for over 10yrs!
I started with IAS who are now GiantGroup.com they were complete feckwits
they managed to deliver my first set of accounts to companies
house late and I got fined for it , after some they paid the fine.

since then I've been using excel spreadsheets that were provided by IAS to do all the basic bookeeping, VAT,.. etc then I get one of my friends who is a an accountant to do the annual accounts and corp tax, in return I provide him with 'free' software and some advice on IT hardware.

[tobym]

I've managed my own ltd company by myself for over 10yrs!
I started with IAS who are now GiantGroup.com they were complete feckwits
they managed to deliver my first set of accounts to companies
house late and I got fined for it , after some they paid the fine.

since then I've been using excel spreadsheets that were provided by IAS to do all the basic bookeeping, VAT,.. etc then I get one of my friends who is a an accountant to do the annual accounts and corp tax, in return I provide him with 'free' software and some advice on IT hardware.

Cheers Bright Spark, that's very interesting. A friend of mine runs a small scientific publishing-type company, and they do what you do. He reckons it's a doddle, and that I shouldn't even consider paying someone a monthly fee, just one offs, as and when (and he's generously offered to talk me through it all). Presumably you'd agree with him?

[gingerjedi]

But will your friend hold his hands up and pay a fine if he's got it wrong? Use an accountant, do what he says and you’re covered, £60-£100 is not a lot in this game for peace of mind.

[jh0711]

what are the normal costs for company set up?

does the £60 odd quid per month include invoicing or do you invoice the agency/endclient yourself, get the money in your company account and then get your accountant to tell you how much you can draw as salary?

cheers!