When should I start to work with an accountant?

[ContrataxLtd]

Concur with this approach.

If imagine anyone offering a "free" Comany formation would be less keen on such an a arrangement, but it's something we do as standard.

Hi Jessica

We offer a 'free' company formation service and don't mind the next couple of months being free of charge too if the client is still looking for a contract, goodwill and all that. I take the view that it's worth establishing a good relationship from the start as we look to work with all our clients for a number of years as I'm sure you do too.

To date it's working well because we've not had a client leave to go to another accountant yet!

Martin
Contratax Ltd

[Jessica@WhiteFieldTax]

Hi d000hg

That's definitely something we will offer to clients, normally for the first couple of months of looking and I would imagine most other accountants would do the same thing.

Makes it easier from our point of view because everything can be setup in advance of the contract so things aren't as time pressured and then everything is in place for the 'go live' so to speak.

Martin
Contratax Ltd

Concur with this approach.

If imagine anyone offering a "free" Comany formation would be less keen on such an a arrangement, but it's something we do as standard.

[Forbes Young]

Choose your accountant carefully

As an IT contractor, does it make sense to wait until to find a contract job(couple of months) or it's better to start working as soon as I finish company formation process?

With there being a vast choice of specialist contractor accountants to choose from these days, its important to choose your accountant carefully, so that you obtain the best advice at a reasonable cost. Many accountants will offer you free initial general advice and cover issues such as IR35, without asking for any commitment.

With this advice you can then look around for suitable contracts and once you are fairly sure that you have found the one for you, the next step can be taken - for instance you may well decide to form your own ltd company to trade through to save on tax and NI. You can then approach a few accountants, choose your favourite and they can then form a company/register your company for VAT/help set up a company bank account/advise on business insurances etc and then provide you with ongoing accountancy services from when you actually commence work on the contract.

[Dan@OrangeGenie]

It's entirely up to you.

If you're happy to manage a bank set up, VAT reg, PAYE reg, contract review whilst working on your contract, then appoint an accountant at a later date.

However, if you would rather get the paperwork out the way, have a company that is ready to roll and most importantly understand your IR35 position (this will determine how you take money from your company) then appoint an accountant as soon as possible.

[philip@wellwoodhoyle]

Paying £100+ a month before you start working through the company though is something you might wish to avoid.

That said I wouldn't be surprised if some accountants might cut you a deal in this case to get your business - no fees until you get your first contract, up to a maximum of N months. Worth asking about.

With smaller practices, fee timings are negotiable and aren't as rigid as the larger firms, so this kind of arrangement would usually be available depending on individual circumstances. It's certainly something that we'd be happy to discuss.

I agree with Martin, I'd rather have longer time to get the tax registrations and bank account application sorted, to allow for the inevitable queries and delays by HMRC and the bank, to avoid stress of last minute panics.

[ContrataxLtd]

Paying £100+ a month before you start working through the company though is something you might wish to avoid.

That said I wouldn't be surprised if some accountants might cut you a deal in this case to get your business - no fees until you get your first contract, up to a maximum of N months. Worth asking about.

Hi d000hg

That's definitely something we will offer to clients, normally for the first couple of months of looking and I would imagine most other accountants would do the same thing.

Makes it easier from our point of view because everything can be setup in advance of the contract so things aren't as time pressured and then everything is in place for the 'go live' so to speak.

Martin
Contratax Ltd

[d000hg]

Doesnt really make much difference because you can extend the company year end once to a max 18 months I think.

Paying £100+ a month before you start working through the company though is something you might wish to avoid.

That said I wouldn't be surprised if some accountants might cut you a deal in this case to get your business - no fees until you get your first contract, up to a maximum of N months. Worth asking about.

[ContrataxLtd]

Sounds good! securing the contract then forming a company and working with an accountant. Is there any disadvantage or is it legal to find a contract job without having a ltd company?

It's perfectly fine to secure a contract then work with an accountant, however, you will need the Limited company formed before you can sign the contract as this will need to be between the client or agency and your limited company.

Normally a Limited company can be formed in as little as a few hours, bank account and VAT probably take about a week and PAYE a couple of days.

Martin
Contratax Ltd

[psg]

I'd have started working with an accountant before you even formed the company. That way you will probably save on the formation fees as most contractor specialists will do this free of charge, they can give you advise on the best setup (possible splitting shares with a spouse) and can get all the other registrations done in time for you to start contracting.

Just my opinion though, I know some people like to secure the contract and then get everything setup.

Martin
Contratax Ltd

Sounds good! securing the contract then forming a company and working with an accountant. Is there any disadvantage or is it legal to find a contract job without having a ltd company?

Nothing to stop you visiting a few accountants (dont believe all you read here that internet 'contractor specialists' are the only way to go) to get the feel of them and find one you get on with and gives good advice before you get a contract.

Before I started, I visited a number of local accountants. I could tell some had IT contractor clients and some just saw you as another company. So I concentrated on those who could show they knew about IT contractor needs by visiting them a couple of times. Id then narrowed it down to 2 and of these, I struck up a relationship with 1 and they got my business.

Do not believe you have to go with those internet IT accountancy busineses, despite what some will tell you, a number of High Street accountants are contractor savvie.

I can pick up the phone, get an email response out of hours or call into the office and I dont get charged extra. The relationship was so good I continue using them even though Im not active.

Which accountant did you choose?

[BolshieBastard]

It's best to start the company and start work as soon as possible after starting the company. Starting a company and then not using it isn't very smart.

Doesnt really make much difference because you can extend the company year end once to a max 18 months I think.

[BolshieBastard]

As an IT contractor, does it make sense to wait until to find a contract job(couple of months) or it's better to start working as soon as I finish company formation process?

Nothing to stop you visiting a few accountants (dont believe all you read here that internet 'contractor specialists' are the only way to go) to get the feel of them and find one you get on with and gives good advice before you get a contract.

Before I started, I visited a number of local accountants. I could tell some had IT contractor clients and some just saw you as another company. So I concentrated on those who could show they knew about IT contractor needs by visiting them a couple of times. Id then narrowed it down to 2 and of these, I struck up a relationship with 1 and they got my business.

Do not believe you have to go with those internet IT accountancy busineses, despite what some will tell you, a number of High Street accountants are contractor savvie.

I can pick up the phone, get an email response out of hours or call into the office and I dont get charged extra. The relationship was so good I continue using them even though Im not active.

[TheFaQQer]

As an IT contractor, does it make sense to wait until to find a contract job(couple of months) or it's better to start working as soon as I finish company formation process?

It's best to start the company and start work as soon as possible after starting the company. Starting a company and then not using it isn't very smart.

[ContrataxLtd]

As an IT contractor, does it make sense to wait until to find a contract job(couple of months) or it's better to start working as soon as I finish company formation process?

I'd have started working with an accountant before you even formed the company. That way you will probably save on the formation fees as most contractor specialists will do this free of charge, they can give you advise on the best setup (possible splitting shares with a spouse) and can get all the other registrations done in time for you to start contracting.

Just my opinion though, I know some people like to secure the contract and then get everything setup.

Martin
Contratax Ltd

[psg]

As an IT contractor, does it make sense to wait until to find a contract job(couple of months) or it's better to start working as soon as I finish company formation process?