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Previously on "Retaining VAT Monies"

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  • Lance
    replied
    Originally posted by Nominally View Post
    if I was prepared to pay the full whack of income tax, all NICs and everything without any attempts at minimising/avoiding; would it be possible to do my own accounts for contracting inside-IR35 with only minimal risk?
    I believe what you asking is "if I paid all the taxes that HMRC think are due as if I was actually inside IR35, are they likely to investigate me?"
    I think the answer is no they aren't likely to bother as they'd spend a load of money to get sweet FA.

    Many do this already. Some contracts you have may be inside and some outside. Most contractor accountants will handle this.
    It's only the contractors that will always be inside that find umbrellas really useful. Personally, if I had a contract inside I'd still run it through my LTD (and pay every penny into my pension).

    Leave a comment:


  • MrButton
    replied
    OP - please get an accountant. There are too many things you can get wrong and you're currently not getting a grasp of all the different issues even the basic ones. Which is understandable as you are not a trained accountant.

    Get one for at least the first year to get your head around it and ask all the questions. The first couple of months you will learn so much, much more than from an Internet forum.

    I would recommend intouch they are always transparent and answer me promptly. They also offer an umbrella service if you're inside ir35 included in their standard Ltd company fee (I've not used it yet)

    I'd also say if you're not going down the accountant route due to money concerns then I don't think it's the right time to be going contracting.

    Leave a comment:


  • Nominally
    replied
    In Theory...

    if I was prepared to pay the full whack of income tax, all NICs and everything without any attempts at minimising/avoiding; would it be possible to do my own accounts for contracting inside-IR35 with only minimal risk?

    Leave a comment:


  • Lance
    replied
    Originally posted by Jenme View Post
    I didn't quite believe what I was being told by HMRC
    but you did believe that you MUST be on FRS. And that's not the question you cam here to ask.
    Your issue is that you don't know how much you don't know so you don't know what to ask.

    Leave a comment:


  • SueEllen
    replied
    Originally posted by Jenme View Post
    You could argue that, for every post that is on here. I wanted to double check what peoples experiences were regarding VAT as I didn't quite believe what I was being told by HMRC and so I feel it was correct to double check my thought process on this one issue.
    Oh dear.....

    Leave a comment:


  • Jenme
    replied
    Originally posted by SueEllen View Post
    If you don't know the basics of VAT then you need professional help.

    You shouldn't need to come to a forum of contractors, most of whom aren't accountants, to ask about it if your knowledge of finance was sufficient.
    You could argue that, for every post that is on here. I wanted to double check what peoples experiences were regarding VAT as I didn't quite believe what I was being told by HMRC and so I feel it was correct to double check my thought process on this one issue.

    Leave a comment:


  • SueEllen
    replied
    Originally posted by Jenme View Post
    It's not that bad - my background is finance but not in general accounting, hence my query on the VAT. The rest I'm okay with.
    If you don't know the basics of VAT then you need professional help.

    You shouldn't need to come to a forum of contractors, most of whom aren't accountants, to ask about it if your knowledge of finance was sufficient.
    Last edited by SueEllen; 19 August 2017, 17:26.

    Leave a comment:


  • Mordac
    replied
    Originally posted by Jenme View Post
    It's not that bad - my background is finance but not in general accounting, hence my query on the VAT. The rest I'm okay with.
    The small saving you'll make by doing it yourself really isn't worth the almighty risks you'll be taking by not having a professional do it for you. I've been contracting for 25 years now, and trust me, you really should at least speak to a proper contractor accountant. The goalposts are moving on an almost daily basis, and any mistakes you make will be very expensive.

    Leave a comment:


  • Jenme
    replied
    It's not that bad - my background is finance but not in general accounting, hence my query on the VAT. The rest I'm okay with.

    Leave a comment:


  • l35kee
    replied
    Originally posted by Scruff View Post
    @OP Jenme :- Please engage the services of a Chartered Accountant, or at least someone in the Professional Services - Accountancy sector. You sound as though you think that doing your own bookkeeping is a substitute for the expertise gained over a lifetime of qualifications and experience gained?

    Its a bit like going to B&Q and buying all the materials to build a Bungalow, armed with plans from Instructables.com
    I'd say that's too kind..

    It's more like going to B&Q and buying (what you think are) all the materials to build a Bungalow, but having never seen a bungalow before, nor having any full set of plans. Then when you get to your plot of land, you log into a forum full of other people who at least have a bunglow, but got a professional to build it for them, and ask those people how they think you should start laying bricks.

    Leave a comment:


  • Scruff
    replied
    @OP Jenme :- Please engage the services of a Chartered Accountant, or at least someone in the Professional Services - Accountancy sector. You sound as though you think that doing your own bookkeeping is a substitute for the expertise gained over a lifetime of qualifications and experience gained?

    Its a bit like going to B&Q and buying all the materials to build a Bungalow, armed with plans from Instructables.com

    Leave a comment:


  • TheCyclingProgrammer
    replied
    Originally posted by Jenme View Post
    I think FRS does work out better for us and when I rang HMRC to check whether I had set it up right (I'm learning so checking everything twice) they said, I had to be on that scheme.
    You don't have to be on the FRS. It's completely optional.

    Leave a comment:


  • northernladuk
    replied
    You don't have an accountant?

    Leave a comment:


  • Jenme
    replied
    I think FRS does work out better for us and when I rang HMRC to check whether I had set it up right (I'm learning so checking everything twice) they said, I had to be on that scheme.

    Leave a comment:


  • Lance
    replied
    Originally posted by northernladuk View Post
    Going for a third strike?
    "why not" I thought.

    Leave a comment:

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