Reply to: 360 Oxygen LTD set-up

[MonkeyWorld]

Thanks for the answers guys. An nope i don't work for 360. I'm quite fresh to the world of contracting and am currently with Giants Umbrella services but looking for other options.....mainly LTD.

Anyhoo, thanks for your inputs, much appreciated.

I'll be off to trawl the pages of this forum.

Rich

I'd go with what's already been said (but saying it anyway so there!), get yourself a good accountant that you pay monthly for an all inclusive service - at least for your first year or two of going Ltd... will take away most of the stressses and strains. Sure it's still a bit more effort than an umbrella, but you get the satisfaction of running your own company and other than making sure you're upto date on IR35 and S660 at regular intervals really not all that taxing (pun intended!)

[el_richo]

Thanks for the answers guys. An nope i don't work for 360. I'm quite fresh to the world of contracting and am currently with Giants Umbrella services but looking for other options.....mainly LTD.

Anyhoo, thanks for your inputs, much appreciated.

I'll be off to trawl the pages of this forum.

Rich

[BOBJ]

I was a cost accountant before I was an IT guy...

That is truly geek-tastic. Was there ever a worse progression than from accountancy to IT? I bet it never happens the other way. Actually, now I come to think about it I worked with an IT guy with an accountancy background....he wasn't ultra-geeky, perhaps they cancel each other out...

[Denny]

There are two answers (regularly rehearsed and republished, since most people don't grasp the logic of cost accountancy):

How much does your accounntant save you by prevention of erroneous returns, accuracy of data, avoidance of late returns, penalties and overpayments and similar practical measures such as knowing all the claimable allowances

or

How much time would it take a year for you to do the same thing yourself, 100% accurately, including cross-checking and keeping up with the rules, multiplied by double your hourly rate (and I'm not going into that again, just trust me on it)

Either sum is in excess of the accountant's fees, hence the accountant is free.

Do you charge yourself out at double your hourly rate just to do your own paperwork? Surely, this is part of your Director's duties and is automatically paid for out of salary (which is paid monthly, not just when you are fee earning). I would suspect that the IR would not regard that as a legitimate business tax deductable expense unless you can justify why you are charging the rate you are and whether you are suitably qualifed to charge such a rate for carrying out your own business paperwork.

[malvolio]

As ever we weep and wilt in the spendour of your superior knowledge.

Awww shucks... Anyway, I cheat - I was a cost accountant before I was an IT guy...

[BOBJ]

I think el_richo is an ex-accountant of mine who worked for 360....shoulda chosen a more obscure name

[rawly]

Either sum is in excess of the accountant's fees, hence the accountant is free.

As ever we weep and wilt in the spendour of your superior knowledge.

[malvolio]

There are two answers (regularly rehearsed and republished, since most people don't grasp the logic of cost accountancy):

How much does your accounntant save you by prevention of erroneous returns, accuracy of data, avoidance of late returns, penalties and overpayments and similar practical measures such as knowing all the claimable allowances

or

How much time would it take a year for you to do the same thing yourself, 100% accurately, including cross-checking and keeping up with the rules, multiplied by double your hourly rate (and I'm not going into that again, just trust me on it)

Either sum is in excess of the accountant's fees, hence the accountant is free.

[rawly]

Actually, you'll find that Mal's accountant doesn't cost him anything (mine doesn't either...)

Elaborate

[cojak]

Actually, you'll find that Mal's accountant doesn't cost him anything (mine doesn't either...)

[rawly]

it costs peanuts to set up your own company that will be there forever and about £1000 a year for accounting support in running it.

£1000! A bit expensive. Mines only £846.

[malvolio]

Nah, nobody's that stupid...

[cojak]

Unless el-richo/Richard/Mr One Post works for 360 Oxygen, obv...

[malvolio]

Simple answer to an overlong question - it costs peanuts to set up your own company that will be there forever and about £1000 a year for accounting support in running it. Why hand any part of that over to someone else? You don't need to, it adds NO value, it costs unnecessary money.

Now go read the sticky at the top of this forum by Simon Dolan.

[chicane]