Off the Shelf or Custom Accounting Solutions

[PerfectStorm]

The vast majority of our clients are IT contractors, so this seems odd.

Were you looking at Qdos Accounting, rather than just the insurance? Qdos Accounting and Qdos Contractor are now completely separate entities.

That's odd, as having taken out services with the latter, they're very keen to make unsolicited introductions to the former (less so post-GDPR)

[Qdos Contractor]

Very similar to my research and reading from this thread and forum, thank you for your response.
Funny enough, it was QDOS (same cover as yours) whom quoted the 1,400 and Kingsbridge who quoted two thirds cheaper than QDOS. Something about IT not being QDOS' forte...

This I will also look into, TY.

The vast majority of our clients are IT contractors, so this seems odd.

Were you looking at Qdos Accounting, rather than just the insurance? Qdos Accounting and Qdos Contractor are now completely separate entities.

[remotejj1]

you should go do your research and choose based upon what you find.

However i setup in the last 3 weeks and after lots of looking, asking and help from that northernladuk chap.

Accountants.
I spoke to several local ones and after a few chats i was looking at many thousands of £ per year.
in the end i went with Gorilla Accounting @ £85 per month
my account creation was all set up by Natasha and she was spot on.
replied to my emails in a swift fashion.
Gorilla charged my £50 for setting up my Comp.
where as the other accountants wanted £250 and £250 respectively.
i like the use of Freeagent and im a bit OCD.
i now have a dedicated accountant who replies to my emails in a fairly swift fashion (for an accountant - think 3-4 hours)

Insurance
i went with QDOS and i paid in full 354.50 for the year.
Where is the £1400 coming from ?
this was for the two policies to cover
Professional Indemnity
Public Liability
Employers Liability
with that you also get an IR35 contract assessment per policy (2 in this instance)

IPSE
I became a member of IPSE mainly for the insurance in case of a tax investigation.

Very similar to my research and reading from this thread and forum, thank you for your response.
Funny enough, it was QDOS (same cover as yours) whom quoted the 1,400 and Kingsbridge who quoted two thirds cheaper than QDOS. Something about IT not being QDOS' forte...

This I will also look into, TY.

[remotejj1]

Not entirely sure what you mean by an all in one? You mean the same business provides you with bookkeeping software, accountancy services, and insurance?

Being new, I now know I mean the Online Accountants although I see there are different types, the larger ones and smaller ones, the latter appear to offer a better service as they have more to gain and prove.

A lot of accounting firms (including us) sort of follow your option (2), in that we work with FreeAgent (a/the market leader in terms of invoicing/bookkeeping for contractors), and can get you a discount with QDOS for their insurances. So legally you're dealing with 3 separate entities...but hopefully all playing nicely together.
I starting to get the picture of how things work thanks to your responses and more reading.

However, if you've just got a 3 month contract lined up and unsure what you'll be doing beyond that, don't automatically think a Ltd Co is the best option for you. If after 3 months you get offered a permanent role that you want to take, you'll have had a whole load of hassle (and hence cost) for negligible benefit. I'd concur with those above, go umbrella until you're more confident what you're doing.

I think it's going to roll on for 6 months in total, maybe more now.

Thank you for your time spent in replying, appreciated.

[Cid]

you should go do your research and choose based upon what you find.

However i setup in the last 3 weeks and after lots of looking, asking and help from that northernladuk chap.

Accountants.
I spoke to several local ones and after a few chats i was looking at many thousands of £ per year.
in the end i went with Gorilla Accounting @ £85 per month
my account creation was all set up by Natasha and she was spot on.
replied to my emails in a swift fashion.
Gorilla charged my £50 for setting up my Comp.
where as the other accountants wanted £250 and £250 respectively.
i like the use of Freeagent and im a bit OCD.
i now have a dedicated accountant who replies to my emails in a fairly swift fashion (for an accountant - think 3-4 hours)

Insurance
i went with QDOS and i paid in full 354.50 for the year.
Where is the £1400 coming from ?
this was for the two policies to cover
Professional Indemnity
Public Liability
Employers Liability
with that you also get an IR35 contract assessment per policy (2 in this instance)

IPSE
I became a member of IPSE mainly for the insurance in case of a tax investigation.

[Maslins]

Not entirely sure what you mean by an all in one? You mean the same business provides you with bookkeeping software, accountancy services, and insurance?

A lot of accounting firms (including us) sort of follow your option (2), in that we work with FreeAgent (a/the market leader in terms of invoicing/bookkeeping for contractors), and can get you a discount with QDOS for their insurances. So legally you're dealing with 3 separate entities...but hopefully all playing nicely together.

However, if you've just got a 3 month contract lined up and unsure what you'll be doing beyond that, don't automatically think a Ltd Co is the best option for you. If after 3 months you get offered a permanent role that you want to take, you'll have had a whole load of hassle (and hence cost) for negligible benefit. I'd concur with those above, go umbrella until you're more confident what you're doing.

[remotejj1]

Public Sector, eh? If your contract is inside IR35 you won’t have much of a choice regarding that 40%, you might at well go umbrella.

Thank you for the reply, my apologies for not stating. It is Outside IR35.

[northernladuk]

Public Sector, eh? If your contract is inside IR35 you won’t have much of a choice regarding that 40%, you might at well go umbrella.

Completely this. The IR35 status will dictate your next move so need to find that out first.

If you are struggling with so many things I'd suggest you go Umbrella for a couple of months while you sort it all out. We can't set your company up. You've got to do that. We could help with the odd question but more likely point you in the direction of the links on the right or get you to search using the google method as described in the FAQ/Welcome section.

[cojak]

Public Sector, eh? If your contract is inside IR35 you won’t have much of a choice regarding that 40%, you might at well go umbrella.

[remotejj1]

Hi All,

I have recently secured a Public Sector IT contract which is due to last 3 months, but will more than likely be extended and/or placed on a similar contract with the main company; so in all I would expect the relationship with the company to be 6 months.

I originally toyed with Umbrella but cannot justify the 40% hit, I am therefore looking at Limited.

As I see it there are off the shelf or Al In One (AIO) solutions such as PayStream (PS) (other providers are available) whose pitch and knowledge was really rather good although I am hesitant at such (AIO) solutions having used them before in different sectors and been stung heavily. Jack of all trades, master of none as they say. I find the AIO solutions appear simple, quick and easy with a hands off approach which just enables me to get on with things although I feel that with such a large company, I would be yet another number rather than a client.

I also feel that with the AIO solutions, using their 'be-spoke' accounting solutions, expense and mileage apps, etc I would be tied to their system should I wish to transfer out at a later stage. I also wonder how good their software and apps really are compared to Xero, Freshbooks and Expensify, etc?

PS quoted me the £150+VAT per month option, which equates to £540 per quarter or £2,160 per annum, which seems rather a lot. I'm sure I remember accountants fees being in the region of £300-500 per quarter for a basic return. PS also stated they would include insurance for free for three months but I do wonder if the old adage is true...if it's free, it's worth nothing!

Having looked through this most helpful forum and its comments, I have a quote from QDOS for circa £1,400 per annum, which seems acceptable for basic to mid-range cover, is it really worth shopping around for insurance or is it all pretty much the same nowadays?

So many questions, I guess what I really asking are the following:

1. Are the AIO solutions any good, are they flexible, can data be transferred out easily, when it comes to actually using their services, e.g. Tax Investigation, Accountants, Advice, etc, do they really know what they are doing and can they deliver?
2. Although more involved, is it better to knit together a solution with a dedicated accountant, top notch software for accounts and expenses, a customised insurance policy, etc and would the performance of these solutions far outweigh their AIO counterparts? I would expect to pay more, but is the extra justified and worth while?

I know some of my statements/questions might appear nebulous with limited points of reference but it's a bit of a Donald Rumsfeld...I don't know, what I don't know!

All thoughts, comments and suggestion are appreciated.