Reply to: Starting Contracting - Advice Needed

[Shakti]

Thanks for all the advice. I guess I will go with an accountant at least for my first year and then see if I really want one. Will talk to a few accountants and see if they offer what I am looking for.

[Sausage Surprise]

From what I have researched, the fixed monthly cost is between 80 - 150 based on which accountant you choose. Unable to get a decent cost estimate for just the end of year filing.

Nixon Williams is £60 + VAT (£70.50) per month.

[Gonzo]

Thanks for the valueable advice. I guess it might be easier to buy an off shelf company and get the name changed, but I am a bit concerned if an off shelf company may have traded in the past and may have debts in it's name. Best would be to register a new company I guess.

Whether you use a formation agent to create a new company, or buy one that they made earlier, they will still probably register their own nominees as officers of the company who then resign immediately and appoint who you tell them into those positions.

I am sure that among the documentation that I received from the formation agent was a certificate stating that the company had not traded. I would look out the paperwork to check, but I have had a heavy dinner and I can't be bothered, sorry.

[Old Greg]

I suppose you could go without an accountant, but you need to read up very well, as you don't just get your books done but also valuable advice. You wouldn't want to miss out on VAT FRS which is worth about 3 or 4% on top of your income.

I use SJD - they're not the cheapest but they have been very good. Nixon Williams and Upton also seem to be highly regarded here. Think carefully before going without an accountant - I would have been significantly worse off and more stressed in the 1st year without one. It's great to have someone at the end of the phone to answer questions like 'Can I do this?' or 'How do I do this?' Having said all this, I would read as much as you can anyway as it pays to understand your own affairs as well as relying on professional advice. There are good guides on the SJD website and on contractoruk.

Best of luck.

[conned tractor]

... I was told that 350-400 was a *good* price.

Sounds much better than 700....just trying to get a feel in case they are taking the michael.

Cheers

[chris79]

Same goes for accountants. I guess I will just take some initial consultancy and use either Sage or MS Accounting Express ( Free ) to maintain my cash flow and expenses. Will get an accountant to do my year end submission. What about Corporation Tax, VAT, NI etc. Any software good in tracking these payments and remind me on deadlines?

Corporation tax is your CT600, pay an accountant to do this. VAT/NI/PAYE etc is done in Sage, deadlines you just set in your outlook calendar to remind you, for instance PAYE/NI is normally quarterly, so 4 times a year and you can pay it online using a debit card.

[chris79]

How much should the end of year accounts cost (approx.)?

Been quoted 700-1000.......this sounds like extortion to me.
(although so does the rate i charge - if a plumber told me figures like that i'd have a heart attack - especially now they've all gone a bit quiet)

I've been quoted £350-400 for CT600 corporation tax returns, but this is a friend of the family sort of thing (who is an accountant by trade). No idea what a commercial accountant would charge you unfortunately... I was told that 350-400 was a *good* price.

[Shakti]

End of year accounts

Will have a look at Nixon Williams & Stilwell Gray. Does anyone just hire an end of year accountant? How much does that cost? I am confident that I can do the bookkeeping myself. So is there a cost different is going with just end of year, or going for the whole year at a fixed monthly cost?

From what I have researched, the fixed monthly cost is between 80 - 150 based on which accountant you choose. Unable to get a decent cost estimate for just the end of year filing.

[aceboy]

I use Stilwell Gray They are £80 per month. They do everything, for me...

[conned tractor]

Just get an accountant to do your CT600 end of year returns.

How much should the end of year accounts cost (approx.)?

Been quoted 700-1000.......this sounds like extortion to me.
(although so does the rate i charge - if a plumber told me figures like that i'd have a heart attack - especially now they've all gone a bit quiet)

[Sausage Surprise]

Nixon Williams do all of the initial legwork for you. Company formation, Business back account etc and all included in their monthly fee.

[kanulondon]

Where can you learn about SAGE?

Shakti - I had a friend of that name that went to school in Hendon! Good luck with your venture

[Shakti]

Thanks for the valueable advice. I guess it might be easier to buy an off shelf company and get the name changed, but I am a bit concerned if an off shelf company may have traded in the past and may have debts in it's name. Best would be to register a new company I guess.

Which company formation agents did you use ( if any )? I already did google search and board trolling to read a lot of material. Now need direct recommendations with whom I can call and talk and choose the right way forward.

Same goes for accountants. I guess I will just take some initial consultancy and use either Sage or MS Accounting Express ( Free ) to maintain my cash flow and expenses. Will get an accountant to do my year end submission. What about Corporation Tax, VAT, NI etc. Any software good in tracking these payments and remind me on deadlines?

[chris79]

Hello,

I am planning to start contracting on my own. Have chosen the Limited Company route. Have a few questions :

1. Is it easy to form the company on my own, or should I use one of the formation agents. What value addition do I get from formation agents over doing it myself apart from the effort involved in doing your paperwork.

2. Can anyone recommend me a good accountant? I don't mind doing bookkeeping on my own, and having it checked by my accountant and get him to do the year end filing. I really don't mind putting in effort and doing stuff myself if I can do it.

As I said, the motto is to put in LOTS of effort. Do things on my own, if possible and save money.

Thanks in advance for your time and advice.

Regards,
Shakti

1. Yes all done same day, very easy.. just search google for company formation, then do a bit research.

2. Sage instant accounts and Sage instant payroll is all you need, takes a bit of time and effort to set it all up, etc.. but once done its 10 mins a week to maintain. Just get an accountant to do your CT600 end of year returns.

[Silas]

2. The PCG has a list of contractor savvy accountants and there are a few that lurk on here for that matter. Picking an accountant is a matter of taste, but there are a few IT contractor specific accountancy concerns that mean using one who understands IT contracting can save hassle in the long run.

Excellent advice. I would avoid accountants who lurk on this forum who are not PCG-approved, because they can cause you a great deal of hassle. Here’s the link for the PCG Approved Accountants list:

http://www.pcg.org.uk/cms/index.php?...chqa&task=list