Reply to: New IT Contractor - Ltd Company dilemma

[SimonMac]

You wouldn't have any ideas who might be able to offer such an excellent service would you?

I'm up for a good debate on the answer

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[Maslins]

I could be wrong here but I don't think that most accountants would only charge you for 2 months if you only worked for 2 months

This. You might not get charged for 12 full months, but if you want to:
- incorporate a Ltd Co,
- get it registered for all the different taxes required,
- ask lots of Qs as you learn the ropes of how everything works,
- trade for just two months,
- get the Ltd Co de-registered for the various taxes,
- file final accounts/tax returns,
- get the company closed,
then don't expect all that for two months worth of fees.

[SueEllen]

Are you basing that figure on the contract being outside IR35? If so, have you had the contract professionally reviewed?

I could be wrong here but I don't think that most accountants would only charge you for 2 months if you only worked for 2 months

Not wrong.

An accountant charges annually to do your accounts, PAYE etc but breaks it into 12 payments.

[pr1]

Well i don't know if they will extend, but if they do then i see it only as benefit. I maybe wrong but the difference in terms of monthly net is approx £500 , is that not a benefit

I'd bet whatever comparison you've looked at to come up with that conclusion assumes you are being paid for a whole year, not just a couple of months

[LisaContractorUmbrella]

Well i don't know if they will extend, but if they do then i see it only as benefit. I maybe wrong but the difference in terms of monthly net is approx £500 , is that not a benefit

Are you basing that figure on the contract being outside IR35? If so, have you had the contract professionally reviewed?

I could be wrong here but I don't think that most accountants would only charge you for 2 months if you only worked for 2 months

[LondonManc]

Well, if you insist...

Thought you'd feel good about that.

[northernladuk]

Well i don't know if they will extend, but if they do then i see it only as benefit. I maybe wrong but the difference in terms of monthly net is approx £500 , is that not a benefit

The rule of thumb used to be that 30k was around the figure that LTDs start to outweigh umbrellas but that might have changed slightly recently.

[Alan @ BroomeAffinity]

New IT Contractor - Ltd Company dilemma

Well i don't know if they will extend, but if they do then i see it only as benefit. I maybe wrong but the difference in terms of monthly net is approx £500 , is that not a benefit

You'll need to factor in more or less a year's accounting fee. A monthly fee is really only an annual fee divided by 12.

[zayn]

For 2 months? Forget it and go umbrella unless you expect something to come up after this contract.

Well i don't know if they will extend, but if they do then i see it only as benefit. I maybe wrong but the difference in terms of monthly net is approx £500 , is that not a benefit

[jamesbrown]

- Unlimited advice

Well, if you insist...

[Alan @ BroomeAffinity]

For 2 months? Forget it and go umbrella unless you expect something to come up after this contract.

[Louisa@InTouch]

You wouldn't have any ideas who might be able to offer such an excellent service would you?

I'm up for a good debate on the answer

[northernladuk]

As a newbie you will have lots of questions and need more guidance... So you'll want to make sure you aren't being charged each time you ask a question. Plus you'll want to make sure that you get a timely response!

You wouldn't have any ideas who might be able to offer such an excellent service would you?

[Louisa@InTouch]

When you ring around, ask what is not included as part of the monthly service. This should give you a good start when comparing.

But you will need to make sure you at least have the key items:

- accounts
- self assessment
- VAT
- payroll
- RTI submissions
- IR35 guidance / reviews
- Advice on income / dividends and being tax efficient
- management accounts
- Unlimited advice

As a newbie you will have lots of questions and need more guidance... So you'll want to make sure you aren't being charged each time you ask a question. Plus you'll want to make sure that you get a timely response!

Happy hunting

[stek]

Should never have left One Direction, mate..