Reply to: New to contracting - advise on accounting service etc.

[Fred Bloggs]

Set aside 3 hours each day to post to CUK.

Nah, that HAS to be part of the day job. The art of working maybe 1 hour per day, grossly out performing the regular staff blokes in the office in productivity, looking incredibly busy and being super duper helpful. Whilst posting at CUK and managing your ISA/SIPP portfolio for an oh so grateful client. Happy days. (It's not like that any more though, is it?)

[Paralytic]

Ah, life style... well, that's not much different with permanent roles in modern days, as not lots of permanent contract last permanent anyway...

For the considerations of the stuff need to be set up (the hassle part), Is the below miss anything:
- Find a good accountant (registration, VAT, PAYE, etc)
- set up bank account
- sign up for PI, tax, legal insurance
- set up SIPP pension

Anything else that I am missing?

Thanks,

Set aside 3 hours each day to post to CUK.

[Orangecat]

Considerations

Ah, life style... well, that's not much different with permanent roles in modern days, as not lots of permanent contract last permanent anyway...

For the considerations of the stuff need to be set up (the hassle part), Is the below miss anything:
- Find a good accountant (registration, VAT, PAYE, etc)
- set up bank account
- sign up for PI, tax, legal insurance
- set up SIPP pension

Anything else that I am missing?

Thanks,

I'd like to point out that setting up a bank account certainly isn't an hours job - well the initial application maybe, but there'll be proofs and bank checking to go on which usually takes 2 weeks or more. BUT it's accepted in the industry that if you've just set up a limited then you can take your first payment into your personal account and push it into the business bank when it's ready. I haven't tried it though

And overall I would say: there's an awful lot of naysaying on this forum, a lot of success that doesn't enjoy company, but entrepreneurialism is all about sticking your neck out when everyone else is being conservative. It's not let me down and the times in work have greatly outweighed the times without. Rather 6 months out looking for a contract than a year of permanent work and I suspect many others here would agree. Well, except for the naysayers.

[malvolio]

I'd like to point out that setting up a bank account certainly isn't an hours job - well the initial application maybe, but there'll be proofs and bank checking to go on which usually takes 2 weeks or more. BUT it's accepted in the industry that if you've just set up a limited then you can take your first payment into your personal account and push it into the business bank when it's ready. I haven't tried it though

And overall I would say: there's an awful lot of naysaying on this forum, a lot of success that doesn't enjoy company, but entrepreneurialism is all about sticking your neck out when everyone else is being conservative. It's not let me down and the times in work have greatly outweighed the times without. Rather 6 months out looking for a contract than a year of permanent work and I suspect many others here would agree. Well, except for the naysayers.

Nay, nay, thrice nay....

But the point is not to put people off but to try and make sure they consider all the aspects of a major change in their working life.

[PerfectStorm]

Depends if your gig is inside or outside IR35

If inside, you can’t use your limited company anyhoo, hence why so important to find out

If outside and over £450 a day ish then no brainer use limited company, you can setup a company with bank accounts in about an hour,



Sent from my iPhone using Contractor UK Forum

I'd like to point out that setting up a bank account certainly isn't an hours job - well the initial application maybe, but there'll be proofs and bank checking to go on which usually takes 2 weeks or more. BUT it's accepted in the industry that if you've just set up a limited then you can take your first payment into your personal account and push it into the business bank when it's ready. I haven't tried it though

And overall I would say: there's an awful lot of naysaying on this forum, a lot of success that doesn't enjoy company, but entrepreneurialism is all about sticking your neck out when everyone else is being conservative. It's not let me down and the times in work have greatly outweighed the times without. Rather 6 months out looking for a contract than a year of permanent work and I suspect many others here would agree. Well, except for the naysayers.

[Orangecat]

Re-read this post:


So find out if the contract is inside or outside IR35, then you'll know.

What do you mean? I mentioned in my post it’s outside IR35.
And I am mainly want to understand what’s the hassle people are talking about as I am new... a conclusion would not help me to understand and judge myself if it is hassle for me ? Or do you mean judging inside/outside ir35 and if that’s over 450 is hassle? Much appreciated if someone could explain what are the hassles?

[cojak]

I am in the same situation starting to contracting. I really wonder why you say it is too many hassles now in UK? I have the choice to do via UK or Dutch. UK seems more beneficial. And of course when talking about ltd option, that would be outside IR35

Much appreciated if someone can help me understanding why it is too much hassle and what are the hassles?

Re-read this post:

Depends if your gig is inside or outside IR35

If inside, you can’t use your limited company anyhoo, hence why so important to find out

If outside and over £450 a day ish then no brainer use limited company, you can setup a company with bank accounts in about an hour,

So find out if the contract is inside or outside IR35, then you'll know.

[Orangecat]

Why?

Yeah it seems like it and as if it’s not worth the hassle if it’s likely a temporary endeavor.

I am in the same situation starting to contracting. I really wonder why you say it is too many hassles now in UK? I have the choice to do via UK or Dutch. UK seems more beneficial. And of course when talking about ltd option, that would be outside IR35

Much appreciated if someone can help me understanding why it is too much hassle and what are the hassles?

[CaptainBiBop]

Yeah it seems like it and as if it’s not worth the hassle if it’s likely a temporary endeavor.

[Fred Bloggs]

Thanks to everyone! That really helps - a lot to get the head around and not the easiest times to do a contracting Job! I will get a IR35 and take it from there

As already stated, if the job is declared inside IR35, you have no choices in the matter. Fundamentally, you came to contracting in the UK 20 years too late, but no matter, good luck. A great many of us have simply given up, I went overseas to escape and am now retiring. It's (UK contracting) just not worth it any more IMO.

[CaptainBiBop]

Thanks to everyone! That really helps - a lot to get the head around and not the easiest times to do a contracting Job! I will get a IR35 and take it from there

[malvolio]

Why do you keep asking questions that have already been answered? Why are yo ignoring the advice that's been given already?

Have fun.

[CaptainBiBop]

Thank you - would you then recommend getting it professionally reviewed e.g. by a company like IR35 Contract Review from the IR35 Experts - Qdos Contractor

Most of the accountancies offer this Review Service but obviously I need to have started working with them for the Ltd first.

The day rate would be more around 350.

[GhostofTarbera]

New to contracting - advise on accounting service etc.

Hi, thanks so much for the advice [emoji4]

Yeah exactly, the situation presented itself and may lead to something more permanent.

From what I gathered, the difference in Take Home between Umbrella and LTD can be relative significant in this case - I was just wondering how much work is involved with an LTD when e.g., using an accountancy service, it seems that they cover quite a lot, set up, IR35 review, closing the LTD. This makes me believe that it could be worth a try, but I might be very naive and there might be way more involved (timewise and money-wise) that I don't see right now.

Depends if your gig is inside or outside IR35

If inside, you can’t use your limited company anyhoo, hence why so important to find out

If outside and over £450 a day ish then no brainer use limited company, you can setup a company with bank accounts in about an hour,



Sent from my iPhone using Contractor UK Forum

[CaptainBiBop]

Hi, thanks so much for the advice

Yeah exactly, the situation presented itself and may lead to something more permanent.

From what I gathered, the difference in Take Home between Umbrella and LTD can be relative significant in this case - I was just wondering how much work is involved with an LTD when e.g., using an accountancy service, it seems that they cover quite a lot, set up, IR35 review, closing the LTD. This makes me believe that it could be worth a try, but I might be very naive and there might be way more involved (timewise and money-wise) that I don't see right now.