Reply to: Going Limited - My head hurts!

[bestnetpayfriend]

No need to have a headache at all - you would be best with an accountant

Hi Clare

You cannot be master of all things, and if you are a busy contractor the last thing you need is to be bogged down by trying to keep up with current legislation and what forms to use. You require an accountant for contractors and not an umbrella company. You will be in greater control of your finances and will also receive the best advice. Whoever you choose they will be audited themselves and have to jump through several thousand loops, exams and many years of experience to be in a position to offer you the best possible advice. Accountants are not cheap but neither are you on the daily rate that you say you are bringing in so why look for the cheapest out there, just get the best you can afford and have total peace of mind knowing that you are being looked after.

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[Clare@InTouch]

It took my company around 3 days to set-up. No time at all.

And as NLUK said... get an accountant to sort all this out for you. They all charge around £100 per month which is worth it for the amount of stress you'll be saving yourself.

Just to follow up on the time scales - a company can usually be set up in a day, often just a few hours. This is the only bit you need in order to start, the rest can follow on later.

A bank account can take around a week, although lots of accountants can provide a pre-allocated account number straight away.

VAT registration will take around 2 weeks if done online, but it can be backdated. Your accountant should do this as part of the incorporation, along with PAYE registration and CT registration. Go careful, some accountants charge extra for that.

My advice is to talk to a few, and see who you get a good vibe from. It's not always a case of expensive = better, make sure you compare what you actually get for your money. And that you like who you're dealing with, and feel able to ask as many questions as you need to.

[northernladuk]

Hi there!
I know you posted this a while ago I was just wondering how you got on? I've got my first role starting in Feb.

I tried to open the other threads but I couldn't find them. I read about SJD, did you end up using them? It's all a little confusing. Any tip or pointers would be much appreciated!

Well this wasn't awhile ago it was created today. There are a page full of tips already and you can use the search in the link I posted to search.

[Lexie76]

Newbie

[QUOTE=StarApple;1681434]I need some help but don't even know what questions to ask. I have been on this site for hours, on the taxman website, companies house, umbrella sites that offer ltd co options.

Hi there!
I know you posted this a while ago I was just wondering how you got on? I've got my first role starting in Feb.

I tried to open the other threads but I couldn't find them. I read about SJD, did you end up using them? It's all a little confusing. Any tip or pointers would be much appreciated!

[kingcook]

Do you think the time is too short to set up the company by end of the month?

It took my company around 3 days to set-up. No time at all.

And as NLUK said... get an accountant to sort all this out for you. They all charge around £100 per month which is worth it for the amount of stress you'll be saving yourself.

[StarApple]

Hmmmm InTouch is starting to look very good as well. I like the fact one can do everything online with them too. And they are cheaper offering a similar service.

[StarApple]

Thanks guys for your replies.

Yeah I am ready, its just a learning process and I have heard and read so much today that there is some serious overload. Hence me being here and asking questions. Don't want the wool to be pulled over my head and be ripped off, or getting it very wrong.

I don't want to be bogged down with stuff that I would have to do every week. I used to have an accountant when i was a sole trader 10 years ago but he wont take on any new clients and he does not use email or the internet anyway, totally old school. So wont meet my needs anyway. I do want the accountant to deal with my tax affairs. I prefer to earn the money or be with my family and friends, than to battle through tax stuff.

What you guys think of ClearSky Accountants? I was looking at the Assure Package. Pricey but hey I used to pay around £120 per month for the Umbrella service with my old umbrella.

[northernladuk]

What's all this "He"

Erm, any one of the following I think...

1) Am from Yorkshire. We always drop letters, like 'alifax etc etc
2) Typo/Keyboard malfunction
3) I am a small minded Yorkshire male chauvanist who might have gotten out of Yorkshire but still thinks in the dark ages....

Sorry

I honestly don't know why I keep doing that. My own accountant who I have had for 4 years is a she! Unforgiveable....

[northernladuk]

Are you ready to run a business?

This to me is the crux of the situation. In a contracting career that is gonna last years I don't see 3-6 months with a brolly as really detrimental if you come out of it on the right foot. Maybe I am being too cautious but am only factoring what I see between the lines from the OP. The other posters are right that you 'might' be able to get it all done in 3 weeks but will you understand a word of...

Don't forget VAT and FRS registration as well.

[Maslins]

Company incorporation can be turned around in a day, but you'll probably want to have a bank account set up and be VAT registered (not compulsory) before you send your first invoice. These'll likely take ~1 week and ~3 weeks respectively.

If you need insurances and IR35 assistance, QDOS are your best bet IMO, they should be able to cover you on that whole front.

Lots of contractor accountants out there, many quite a bit less than £180/month...though obv cheapest not necessarily best!

Do be aware that even with an accountant, you will have more admin to deal with yourself than you'll be used to via an umbrella. All part and parcel of the deal I'm afraid. You see the occasional thread on here "My accountant's crap so I'm in a mess"...as director the company and its/your taxes are your responsibility, not the accountants...they just hold your hand. So pick a good one, and don't ignore what they tell you.

...oh, and like Wanderer said, please forget the car idea, at least until you've got the hang of the basics. Company cars are a whole separate world of complications, so I'd strongly recommend avoiding for the time being.

[jamesbrown]

He can advise on everything you have asked so far.

What's all this "He"

To the OP, what precisely are you struggling with? The post is a little unfocused. A good accountant will hold your hand (and can certainly arrange for all the preliminary set-up and registrations), but that doesn't mean you can forget about tracking the finances, deadlines, responsibilities etc. Otherwise, you'll have no basis for spotting errors.

[Wanderer]

StarApple, have a look at the PCG. Go to this link and answer their questions. I suggest you go for the plus membership package and also accountancy+book keeping. Insurance will be dictated by the requirements of your contract.

From there you can get everything you need in one place which will save you a lot of hassle. It will cost you ~£200 a month but that's pretty much what it costs. Perhaps you would save a few quid here and there but weigh that up against the price of having it all sorted so you can get on with earning money....

You may want to skimp by not getting an accountant because you don't need one straight away but remember that you WILL need one to do your year end accounts and the cost of this won't be much different from the cost of retaining one on a monthly payment. Go with the monthly option so you can get them to do all the admin of dealing with HMRC, VAT, PAYE etc for you and that saves stress, hassle and avoids getting fined for not filing something when you should.

My old car is on the brink and I saw some business car lease agreements. As a ltd company can I take up these deals?

No, don't.

It's been discussed here and the consensus is that it's probably not worth the bother. Just go with the simple method: buy yourself a car personally and claim 45p/mile for your business mileage. Honestly, it will work out pretty much the same tax wise and it will save you a LOT of aggravation by keeping your tax affairs dead simple. Company cars might look like getting something for nothing but there are a lot of traps to fall into and the tax position is complex and it's difficult to know if it's a good deal or not. Feel free to ask your accountant when you sign up - they will probably say the same thing.


Good luck!

[deanosity]

@Northernlad

Thanks for replying.

Do you think the time is too short to set up the company by end of the month?
There are some companies online that will do it all. Or are they no good?

I will check out the recommend thread. Thanks.

You could start the ball rolling today.

Tonight
Form the company online now https://golimited.co/ (10 minutes of effort, you will probably receive the documents tomorrow)
Setup insurance (30 mins)

Tomorrow
Join up with a reputable accountant, they may even be able to help with setting up the business bank account.

Are you ready to run a business?

[Platypus]

It's my opinion that you CAN have this set up by the end of the month.


Instant Company Formation - UK Company Formations Online in 4 Hours

P.S. Lots of people on here do use SJD and seem very happy with them, so it could make sense to get the "complete package" from them, one-stop-stop and all that. Me, I use a small local independent guy.

[StarApple]

@Northernlad

Thanks for replying.

Do you think the time is too short to set up the company by end of the month?
There are some companies online that will do it all. Or are they no good?

I will check out the recommend thread. Thanks.