Reply to: Changing account

[oraclesmith]

yeah I find Pi clauses in most agency contracts - i have never gone direct are the contracts similar or is it a lot more flexible?

cheers!

If you go direct it's your contract so you can be as flexible as you can negotiate but it must be 'reasonable'. Get a solicitor or the PCG to give you a template. My solicitor advised me never to mention PI in the contract unless I have to as this may be seen as encouraging the client to make a claim. The PI is YOUR insurance, not theirs !

[Nixon Williams]

is it not illegal to operate a company employing someone without employers and public liability? also is Profesional Indemnity needed or just a good idea?

cheers

You no longer need employer's liability if you are the only employee. Other insurance packages can be sourced for around £200-300 per annum.

There should not be any setup costs, many accountants,(us included) do all this for free. Our monthly charges are £60+VAT per month with nothing more to pay, this would cover all the tax and accounting needs for the company. We also cover your personal tax return.

A contract review will cost around £140+VAT

I hope this answers your query.

Alan

[jh0711]

yeah I find Pi clauses in most agency contracts - i have never gone direct are the contracts similar or is it a lot more flexible?

cheers!

[oraclesmith]

As a rider to this, I would have thought that if you're running a limited without business liability (employers and public) in place then you run the risk of invalidating other insurances such as legal expenses because you're not carrying out due diligence.

[oraclesmith]

is it not illegal to operate a company employing someone without employers and public liability? also is Profesional Indemnity needed or just a good idea?

cheers

You must have some business liability cover.

PI is recommended at it's cheap in comparison to the risk and will be a prerequisite in some contracts, in my opinion.

Legal expenses cover insurance is recommended if there is a risk of investigation, so it depends what you're up to. In my opinion.

It's all good.

[jh0711]

With various accountants mentioned on here its around 70 quid a month ongoing for all your Co acountancy needs, setup is free if you agree to a 12 month minimum in fees. I don't bother with any insurance, I pay for PCG+ which is just over 200 quid I think, but if you are in your first year there is no point in having it until you have some accounts to be investigated, so nothing for that in year 1. If you sign up for flat rate VAT you'll save a decent chunk in VAT that you'd shell out for via an umbrella, 1K+ for me. So all in all it just about costs nothing when comparing it to an umbrella service.

is it not illegal to operate a company employing someone without employers and public liability? also is Profesional Indemnity needed or just a good idea?

cheers

[oraclesmith]

is that about my posting??

Yeah. There is not going to be any real work involved on their part so it seems that it's simply a tie-in fee to deter you from switching (eg. to compensate them for loss of business) or am I being cynical ? It sounds like they are doing Company Secretary duties for you as well as general accountancy, so you will probably have the same situation with your new accountant. They will want to charge you for Company House annual returns, keeping the company document etc etc.

In my opinion, you may be better off taking control of the company documents (memo of association etc) yourself and just using your accountant to do your end of year and deal with payroll, tax etc. I depends whether you want the extra paperwork versus paying someone else a premium to do it.

[PeterPan]

Seems a bit odd to me.

is that about my posting??

[rootsnall]

i know all of that....

what does it cost???

With various accountants mentioned on here its around 70 quid a month ongoing for all your Co acountancy needs, setup is free if you agree to a 12 month minimum in fees. I don't bother with any insurance, I pay for PCG+ which is just over 200 quid I think, but if you are in your first year there is no point in having it until you have some accounts to be investigated, so nothing for that in year 1. If you sign up for flat rate VAT you'll save a decent chunk in VAT that you'd shell out for via an umbrella, 1K+ for me. So all in all it just about costs nothing when comparing it to an umbrella service.

[oraclesmith]

Seems a bit odd to me.

[PeterPan]

No accountant should charge you for the transfer of records and as such you will need to find out exactly what the fee is for
ie outstanding invoice etc

Thats the message that i recieved from them

"The £250 is simply the standard charge for transferring a company if we have incorporated it but you have not worked through it via us. I will email you over an invoice later today, as soon as we have a received payment I will transfer the company over to your new accountants"

And what shall i charge them for of being incompetent?

[oraclesmith]

yes yes but any idea of the actual costs involved?



that does make me laugh - ooh look I am a director of my own company - the fact that it only has 1 employee (you) and no premises is something these guys/girls leave out when 'bigging' it up in front of the ladies (or gents!!)

so come on costs.....
insurances
initial set up
monthly accountancy costs
yearly accountancy costs (for year end subs etc)
PCG + membership (if needed)
contract review (for IR35 status)

what is the likely cost....

Bigging it up works for me!

insurances

Allow about £500 per annum including PI.

initial set up

Depends what you want. Basic costs are for incorporation about £100, but if you want direct sales then you need a website, domains, laptop, accounting software - all tax deductable.

monthly accountancy costs
yearly accountancy costs (for year end subs etc)

Allow about £1k per annum for an accountant to be your tax agent and sort out payroll, self assessment etc.

PCG + membership (if needed)
contract review (for IR35 status)

Optional extras - say allow £300 per annum.

Total cost somewhere approaching £2k - but it's all before tax. If you're earning, then this is an investment against tax savings and other benefits, so it very much depends on how much you earn.

If you have to make the company dormant because you go permie for a couple of years or umbrella, then it can be very cheap as there is very little to pay out.

[jh0711]

i know all of that....

what does it cost???

[PAG]

if you can differnetiate between your personal money and company money then there is no hassel in running the company. I do admit initally there are lot of paperwork and understanding the coporate tax but once you get hang of it ... it's easy.

[jh0711]

yes yes but any idea of the actual costs involved?

Some people like the illusion of being in business

that does make me laugh - ooh look I am a director of my own company - the fact that it only has 1 employee (you) and no premises is something these guys/girls leave out when 'bigging' it up in front of the ladies (or gents!!)

so come on costs.....
insurances
initial set up
monthly accountancy costs
yearly accountancy costs (for year end subs etc)
PCG + membership (if needed)
contract review (for IR35 status)

what is the likely cost....