Reply to: Umbrella to PSC timing - now or next financial year?

[DallasDad]

Thanks very much for that enlightening post Contreras, it just shows how green I am re all this.

[Contreras]

I assume that if I do it now then in a few weeks time that would generate the need for my chosen contractor accountant to do some form of year end? and I also assume if I do it now I could find quite a lot of related paperwork to do myself so I assume I would have a fairly rapid learning curve over the next few weeks?

Wrong assumptions.

The tax year (April 6th - April 5th) and your company year (Annual Reference Date, based on date of incorporation) are not the same.

In the context of your question, the "rapid learning" would be understanding how best to arrange affairs up to the respective year ends. You/your accountant then have ~9 months to submit.

If you incorporate now, that would make your company's ARD to be end of Feb (first year's final accounts due 30/11/18). You can postpone registering the company as an employer until after April, which should simplify this year's personal SAR (due 31/1/17) if you have to do one at all (it's at the whim of HMRC).

Btw, salary doesn't need to be monthly - RTI returns can also be quarterly or annual - meaning it would be possible even to wait until early 2017 before registering the company as an employer. Make sure you get a P60 and a P45 from the umbrella and keep hold of these.

Fwiw, based on what you have said, I see no reason to wait. At the least, sound out a few accountants now.

[pr1]

Nope you are right. We do have in house jokes about stuff like this. We've got the their there they're brigade on here as well We had a thread on these annoying mistakes people make ages ago and Mary Poppins had a good one. When people say being kicked in the crutch rather than crotch. Always makes me laugh when I hear that.

i bet they say kicked in the clutch on the car forums

[northernladuk]

Yes point taken PR1 and I am.
The reference to advice is I think, a bit of an in-house joke here unless I have misunderstood.
I have noticed NLUK tends to pick up on people that use 'advise' instead of 'advice'.

I am a member of several car forums and many posters don't seem to know the difference between 'brakes' and 'breaks'.

Nope you are right. We do have in house jokes about stuff like this. We've got the their there they're brigade on here as well We had a thread on these annoying mistakes people make ages ago and Mary Poppins had a good one. When people say being kicked in the crutch rather than crotch. Always makes me laugh when I hear that.

[DallasDad]

Yes point taken PR1 and I am.
The reference to advice is I think, a bit of an in-house joke here unless I have misunderstood.
I have noticed NLUK tends to pick up on people that use 'advise' instead of 'advice'.

I am a member of several car forums and many posters don't seem to know the difference between 'brakes' and 'breaks'.

[VectraMan]

Don't know about the expenses, but if you're an upper rate tax payer (or about to be) then you're going to be better off going Ltd. now and make whopping pension contributions for the next 2 months.

[pr1]

Oooo I don't know............ but I suspect you could be right, bother! A good thing it has only been since 11th Jan so not a massive amount of money to pay back as my commute is only 50 miles a day.

I will put that on my ask the accountant list and yes I am looking at Gorilla I read you advice (or just for you 'advise') elsewhere on that already.

Bear in mind that when you sign up with an accountant you're typically either bound in for a full year or will have to pay an exit fee if you leave, so make sure you're happy with your choice (ask around)

(I'm also with gorilla and think they're great but you shouldn't take blind advice - do some research)

[DallasDad]

Thanks for bringing that issue up, it had not occurred to me.
You guys certainly seem to have a good handle on things.

It also sort of answers my original query.
I think I will wait till the start of the next tax year when my current ability to claim expenses would have ended anyway.

That way I can start with a clean slate for 2016/17 and I will sort out this years tax liabilities separately.
I am going to end up with a bill either way because I claimed JSA for a few weeks in the Autumn and that I believe is also taxable.

[mudskipper]

Ah - in that case, you're going to struggle to show that this location is temporary because it's the only place that you've ever worked for this employer.

There is some debate about intention - if you didn't intend it to be your only engagement, then it has been argued that you can claim up to the point when that intention changes. Probably best to check with the brolly about what they believe is allowable.

[TheFaQQer]

Ah, just engaged brain, did you mean last engagement as in the one before this one? Or my current engagement?
If the former then no I am a newbie so this is my first Gig.

Ah - in that case, you're going to struggle to show that this location is temporary because it's the only place that you've ever worked for this employer.

[TheFaQQer]

Won't quitting your umbrella mid client mean you'll have to pay expenses back as the last engagement will be classed as permanent.

IIRC, the guidelines on this changed. It used to be the case that when you resigned from your umbrella, that final contract couldn't be classed as a temporary workplace, but the guidance changed so that it was OK still as long as you could show that the location was temporary.

[northernladuk]

Oooo I don't know............ but I suspect you could be right, bother! A good thing it has only been since 11th Jan so not a massive amount of money to pay back as my commute is only 50 miles a day.

I will put that on my ask the accountant list and yes I am looking at Gorilla I read you advice (or just for you 'advise') elsewhere on that already.

Lol very good

[DallasDad]

Ah, just engaged brain, did you mean last engagement as in the one before this one? Or my current engagement?
If the former then no I am a newbie so this is my first Gig.

[DallasDad]

Won't quitting your umbrella mid client mean you'll have to pay expenses back as the last engagement will be classed as permanent.

Oooo I don't know............ but I suspect you could be right, bother! A good thing it has only been since 11th Jan so not a massive amount of money to pay back as my commute is only 50 miles a day.

I will put that on my ask the accountant list and yes I am looking at Gorilla I read you advice (or just for you 'advise') elsewhere on that already.

[northernladuk]

Won't quitting your umbrella mid client mean you'll have to pay expenses back as the last engagement will be classed as permanent.

There is no need to have company and personal year ends the same. A decent accountant will handle it properly so makes no difference.