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Advise wanted for a first timer

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    Advise wanted for a first timer

    Hi folks,



    I just got my first contract, start date in Jan 2006. I've been looking around various sites and a lot of the information is somewhat confusing. So, if those out there with more experiance could answer a few question or give some advise I'd be greatfull.

    1 : Limited company or Umbrella? Pro's and cons. Bearing in mind I have no idea about tax etc at the moment.

    2 : IR35, how the hell does this work, and how can I make sure I dont get clobbered by it? It looks like it could cost me £1000 a month in tax.

    3 : Accountancy services, should I go with a big name or stick to a local accountant's firm.

    4 : Company bank account. The high street banks are sharks, any advise on a better option?

    5 : Managing finances. Any gotcha's I should look out for?

    I know this is a lot of stuff but I was't expecting to get a contract on my first time out, so to speak, and I've had less time thatn I thought to research it all.

    DB
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

    #2
    Dont mean to be rude, but I really think we need an FAQ for newbies on here... oh, look.....

    http://www.contractoruk.com/first_timers/index.html

    Sorry but I just cant be bothered to type it all over again.
    Vieze Oude Man

    Comment


      #3
      Try this link:

      http://www.manager.co.uk/content/forums/index.html and use the search facility

      Also look on the ParasollIT website etc.

      http://www.parasolit.co.uk/
      Last edited by ancient; 29 October 2005, 11:12.

      Comment


        #4
        And the PCG First Timer's guide at www.pcg.org.uk

        It's good to ask but we get bored trying to answer the same old questions. Do the reading then come back with what you really don't understand - there will be quite a lot, don't worry!! Quick one answers follow to keep you amused:

        1. Your choice, I prefer Ltd for all sorts of reasons. If you go brolly use a big one (Parasol are good) and stay away from anyone offering over the odds services because they'll be lying. Be aware that the Revenue are looking into composites and brollies as tax avoidance devices

        2. If you find out how IR35 works and how to avoid it, tell us right away! Read the guides then ask again. However, go with a brolly and you'll be an employee anyway so you won't be caught by IR35 but will (or should) be paying the same level of taxation. It's not a £1k a month differential unless you're on about three times my rate.

        3. Get someone who knows and understand contracting and the associated tax law. I use SJD but some find them expensive, there are other names - search these fora carefully.

        4. Banks are sharks, it's what they do. Go with either Carter Allen, Abbey or HSBC and open a business account. It will be better in the long run. Do not confuse your company's money wth yours.

        5. No, at your level the rules are simple. Learn them and follow them. Use your accountant's advise. Check anything you are not happy with or don't understand. Do not piss off the VAT people ever. You can piss of the tax people, but they will bite eventually. And believe it or not, both their helpdesks are actually very good and give honest answers unless you mention IR35.
        Blog? What blog...?

        Comment


          #5
          Here's some advice, stay away from those goons who call themselves the PCG. Its because of them that you were forced to opt out of the agency regs.

          Mailman

          Comment


            #6
            Originally posted by malvolio
            It's good to ask but we get bored trying to answer the same old questions. Do the reading then come back with what you really don't understand - there will be quite a lot, don't worry!! Quick one answers follow to keep you amused:
            <snipped>

            Thanks Malvolio, that was actually very usefull even just in confirming what I already thought ( IR35, Aaaargh ). Carter Allen certainly seem to be the favorites for company banking and I'll take a look at SJD for the tax and accounting stuff.

            As for the IR35 cost, I hate to break it to you but according to all the IR35 calculators I've tried it's anywhere between £950 and £1050 pm difference in tax for me. I work in IT Security Audit and Governance if you were wondering.
            "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

            Comment


              #7
              Let me give you some advice, in fact, let me advise you.

              Comment

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