Reply to: Returning to contracting - minimum set up required before I can start work?

[psychocandy]

I've never paid for any form of insurance in 'IT Contracting' since I started 14 years ago. Maybe if I worked on critical systems then yes I'd consider it but frankly no.

It's a little like the whole 'IR35', is it? Isn't it debate? At the end of the day, 95% of contractors are one man bands and personally in my opinion disguised employees not real businesses and I have yet to have ever heard of a contractor who has needed to claim on their insurances (I expect someone will pipe up though).

Depends on your personal feeling of risk.

Hmmm. Good point but it is in the contract that I need it so I guess they agency could insist.

Also, its not that expensive. Found all 3 for £240 with Qdos - less than a days pay.

[MarillionFan]

All three are mentioned in the actual contract though.

I've never paid for any form of insurance in 'IT Contracting' since I started 14 years ago. Maybe if I worked on critical systems then yes I'd consider it but frankly no.

It's a little like the whole 'IR35', is it? Isn't it debate? At the end of the day, 95% of contractors are one man bands and personally in my opinion disguised employees not real businesses and I have yet to have ever heard of a contractor who has needed to claim on their insurances (I expect someone will pipe up though).

Depends on your personal feeling of risk.

[RichardCranium]

All three are mentioned in the actual contract though.

Surely you're not suggesting recruitment agencies are so inept as to not actually understand the business of contracting!

Shock Horror! Who'd have thought it?

It's all they do yet they can't get their little heads around the legalities of it. Fancy that!

So you have to buy something worthless because they ask for it for no good reason!




Welcome to contracting.

[psychocandy]

If you are the company director, sole employee and 50% or more shareholder then you are exempt from Employer's Liability insurance. Professional Indemnity and Public Liability insurance are often taken out but are not a legal requirement.

The deciding factor is that some agents will ask that you get all three insurances and will refuse to do business with out it. Do a search on here for insurance and you will find the names of a bunch of insurers who will do this cover for you. You can get it setup the same day if you need it.

All three are mentioned in the actual contract though.

[Wanderer]

Insurance also?

If you are the company director, sole employee and 50% or more shareholder then you are exempt from Employer's Liability insurance. Professional Indemnity and Public Liability insurance are often taken out but are not a legal requirement.

The deciding factor is that some agents will ask that you get all three insurances and will refuse to do business with out it. Do a search on here for insurance and you will find the names of a bunch of insurers who will do this cover for you. You can get it setup the same day if you need it.

[psychocandy]

Ignore him, he had a bad holiday in Tenerife.



If you're doing this fast, which it sounds like you are.

1) Choose Company Name
2) Tell Agent
3) Form company (24 hour job will be fine but you'll find it will take a few days)
4) Then you need your company no for the paperwork
5) Sign Contract with Company No. and Company Name. Tell agent others will follow
6) Get email confirmation of Cert of Incorporation. Send to agent
7) Bank account may take weeks. So your call. Either send them the name of 'XXXX LTD' and your own personal bank number and sortcode, telling the agent. 'This is my bank account' or wait a few weeks while this process takes place
8) VAT. Upto you if you wish to apply. You need to be +£70K or so(whatever the present threshold is). Your choice. At which point, you can wait for it. Tell the agent you are expecting the VAT cert, invoice without VAT and then reinvoice with VAT when it arrives.

That what you're after?

Insurance also?

[psychocandy]

Just looked mine up and it's 1.

Anyway good luck psychocandy. The invoice for this advice is in the post.

. Yeh. OK better not give you my address then !!!! But thanks.....

[Zoiderman]

I have been using the same accountancy company for many years (9) and he's never failed me, sorts out new companies within 24hrs and does all the paperwork for VAT etc, for a small fee. It really takes the hassle out of the whole process. PM me if you'd like his email address. I would seriously recommend him, costs about £110 a month ex VAT.

[Scrag Meister]

8) VAT. Upto you if you wish to apply. You need to be +£70K or so(whatever the present threshold is). Your choice. At which point, you can wait for it. Tell the agent you are expecting the VAT cert, invoice without VAT and then reinvoice with VAT when it arrives.

That what you're after?

Depending on your business, discuss Flat Rate VAT with your accountant, when you have one.

[MarillionFan]

Ah. Good point.

Just looked mine up and it's 1.

Anyway good luck psychocandy. The invoice for this advice is in the post.

[psychocandy]

We tend to recommend 100 as it ties in with the opening balance added to the company bank account - your initial deposit of £100 pays for your shares.

Just keep in mind that you will owe the company the value of your shares, so don't go for 10,000!

Ah. Good point.

[Clare@InTouch]

100?

We tend to recommend 100 as it ties in with the opening balance added to the company bank account - your initial deposit of £100 pays for your shares.

Just keep in mind that you will owe the company the value of your shares, so don't go for 10,000!

[psychocandy]

Even so - I'd start with more than 2 in the first place.

100?

[Hex]

Takes about 5 minutes or less to change it on the Companies House website. I did it a few weeks ago.

Even so - I'd start with more than 2 in the first place.

[Fred Bloggs]

You can change it later, but I'd go for the 100 shares now - more flexibility for the future.

Takes about 5 minutes or less to change it on the Companies House website. I did it a few weeks ago.