Part time contracting accountancy costs?

[downtheroad]

Hi all, completely new to this and will spend time reading through the forum before I go asking my newbie questions but there is one question that doesn't appear to be in the Accountant recommendations sticky, that I would like to ask.

Quick potted history first. I took VR and am now taking my pension but not ready to hang up my boots yet and would like to do a bit of short / medium term contracting for a few years. I think that I am probably more employable (just!?) as a contractor because I can't see an employer wanting to take somebody of my age on permanently and my skills are such that I could help a business out on a short term basis.

2017/18 will be a relatively complicated tax year for a simpleton like me what with having worked in a PAYE position for most of last year, then taken redundancy pay, invested in a SIPP and hopefully working as a contractor. I'm thinking that I probably won't be able to work permanently, moving almost seamlessly from one contact to another as many younger folk do. Anyway, I’m not really sure that I want to.

So my question is that being as I may only work, say, 6 months a year if I’m lucky, but that I feel as though I would need an accountant, do I have to pay a monthly fee for the whole year or are there other options?

Thanks.

[NotAllThere]

Find an accountant who will accept payment on a time and materials basis - i.e. you only pay for the work done, as it is done. It's how many businesses do it.

[downtheroad]

Ok thanks, so is that a reasonable expectation?

[Lance]

It will cost you around £1000 a year to do it T&M. Which is the same as paying the monthly guys (except SJD). Just because you only work for 6 months doesn't reduce the effort that an accountant does by much at all.

Unless you can find an accountant who will do you a fixed price around £500 then just pay monthly and read the accountancy recommendation thread in the forums. And you'll get Free Agent.

[Jessica@WhiteFieldTax]

As others have said, generally the time costs to the accountant of year end work - accounts, returns - aren’t vastly different if you only work six months v working twelve months.

There may be a small saving on in year work like vat returns, but that’s probably offset by extra time on advisory.

The stance I took when I rehashed tariffs a few years ago was a 50% monthly fee reduction for out of contract, but after a waiting period of three months. I felt that it was periods of three months plus that simplicity savings may be made.

Anyway, if you look around, and ak the questions, other than the sausage factory accountants, you should find most accountants will be both honest and pragmatic over the issue if you are upfront with your concern.

HTH

[sludgesurfer]

"2017/18 will be a relatively complicated tax year for a simpleton like me what with having worked in a PAYE position for most of last year, then taken redundancy pay, invested in a SIPP and hopefully working as a contractor"

I had a very similar situation a few years back when I flipped from Permie to contractor - mine was complicated slightly by a foreign earnings tax relief claim but even then the above is handled by about 4 boxes on a Self Assessment return. Its really not a big deal. Your accountant will ensure the tax-free element of your redundancy package & SIPP contributions are handled correctly.

I'd agree with the advice above. Pay for an annual service.

All the best with it.

[downtheroad]

Ok, thanks all for the advice.
I'll wait till something turns up and contact a few of the Accountants that get mentioned here.

[Chart Accountancy]

As mentioned above, annual service could work well considering you are receiving pension, you may not need to run payroll through the company. You will need annual service for the company and your personal tax return. If you are VAT registered, you can easily make the submissions if your accountant provides you with good bookkeeping system.