Reply to: Retaining VAT Monies

[Lance]

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).

[MrButton]

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.

[Nominally]

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?

[Lance]

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.

[SueEllen]

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.....

[Jenme]

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.

[SueEllen]

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.

[Mordac]

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.

[Jenme]

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.

[l35kee]

@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.

[Scruff]

@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

[TheCyclingProgrammer]

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.

[northernladuk]

You don't have an accountant?

[Jenme]

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.

[Lance]

Going for a third strike?

"why not" I thought.