Reply to: Order of things to do

[mudskipper]

If you've got the money to loan to your ltd, it's worth buying any kit you need before registering for VAT FRS - you can claim back any VAT spent before you join. After you join you can only claim back VAT on capital expenditure > £2K. I wonder if it's possible to pay accountancy fees up front for a year too - worth checking with the accountant. VAT saving would be worth it.

[malvolio]

Look at PCG policy from inception to a year or two ago. Then compare it with now. Whatever has happened? You all seem to have joined HMRC. You even repeat their mantras.

You will see, the things that you are doing now will come back to bite US. And with such a benign membership, there is nothing to stop it all happening.

Ignore the politics and the policy (although bitching from the outside is really going to stop things happening, isn't it?).

The commercial benefits of membership make it a no-brainer: the Plus package would cost somewhere around £1000 a year using commercial providers and it wouldn't be unconditional. Plus free legal and taxation advice of course...

[vwdan]

@vwdan how long did it take you to setup a company, bank account and register for VAT?

I'm expecting this to be 2 weeks and will be getting the accountant to do it as well.

Setting up the company is a matter of days as it just needs SJD to process it. The bank account was a bit more of a faff as I had to sign things and speak to them over the phone and clarify what I was all about including estimated turnover etc - I think it was probably a couple of weeks from applying on-line to actually having an account I could use. If you're using a high street name bank, you may be better off simply walking in.

It took just shy of 3 weeks from asking SJD to form my company to getting my VAT registration number.

[VillageContractor]

@vwdan how long did it take you to setup a company, bank account and register for VAT?

I'm expecting this to be 2 weeks and will be getting the accountant to do it as well.

[Troll]

Look at PCG policy from inception to a year or two ago. Then compare it with now. Whatever has happened? You all seem to have joined HMRC. You even repeat their mantras.

You will see, the things that you are doing now will come back to bite US. And with such a benign membership, there is nothing to stop it all happening.

+1

[TheFaQQer]

4. Register for VAT (Again, I just paid SJD to sort)

If you are planning on using the flat rate scheme, then there is an incentive of 1% discount in your first year of VAT registration. For that reason, it may be worth putting off the VAT registration until you have a contract start date to get the maximum benefit.

[TheFaQQer]

5 why?

Cheap business interruption cover, including sickness, jury duty, bankruptcy of client or agency, contract falling through because of agency not honouring the contract...

Show me a comparable policy for a similar cost as IPSE+ membership.

[TheFaQQer]

Use Bauer & Cottril. They do the negotiating with the agent for you

You keep repeating this as a reason for using B&C instead of Qdos.

Qdos will do the negotiating for you - you just need to ask them to do it. They don't do it as part of their free service, but if you are paying the (significantly lower than B&C) full service fee, then they will do the negotiating as well.

[LisaContractorUmbrella]

Running a Limited Co as a contractor is quite a responsibility as our industry is securely wrapped in thousands of yards of red tape. Reading the guides on this site will be a big help in understanding relevant legislation.

You don't have to set up a Ltd co immediately - an umbrella company is often used by first time contractors and those finding themselves inside IR35 as you are employed by them and paid via PAYE

Whichever route you decide to go down, take the time to understand all the implications and to find the best accountant/umbrella company for you

[BolshieBastard]

Hi,

I'm looking for my first contract role, taking the jump from permiedom. I've tried to get as much info off of the site as I could but just wanted to check the order of things in which I need to do things.

1) Find a role

Good luck. Remember its a numbers game.

2) Have contract reviewed by QDOS

Use Bauer & Cottril. They do the negotiating with the agent for you

3) Get a contracting specialist accountant

Always a good idea.

4) Setup a bank account

Another good idea

5) Join IPSE

Dont bother

I've probably missed a few things and made some mistakes so any advice would be appreciated.

VC

[vwdan]

Hi,

I'm looking for my first contract role, taking the jump from permiedom. I've tried to get as much info off of the site as I could but just wanted to check the order of things in which I need to do things.

1) Find a role

2) Have contract reviewed by QDOS

3) Get a contracting specialist accountant

4) Setup a bank account

5) Join IPSE

I've probably missed a few things and made some mistakes so any advice would be appreciated.

VC

If you're super serious (As in, this is absolutely what you're going to do) then this was my path last year:

1. Sort out LinkedIn and CV. Distribute it.
2. Incorporate a Ltd Company (I paid SJD to sort this)
3. Once you have your company, set up a bank account
4. Register for VAT (Again, I just paid SJD to sort)
5. Look for, and secure a role
6. Buy insurance (I got IR35, Public Liability and Indemnity)
7. Get contract reviewed etc

I resigned in between steps 1 and 2, but my situation was quite unique in that I was close enough to the company that I felt I could take the gamble and give more notice than required. The end result for me is that it gave me a few months breathing room but also a 'drop dead' date which I could relay to agents. I was then lucky enough to blag a contract in my last but one week of work.

I've personally also gone for PCG+, (Or IPSE as they are now) but ultimately that's for you to decide.

[eek]

Order of things to do

+1.

Hell will freeze over before that happens.

I know but it's always nice to have links to remind others how two faced inaccurate and downright dangerous his advice often is.

Anyway here is the quote

IPSE suggests a full merger of NI and income tax, simplifying the tax system for all.

[tractor]

...

I wasn't talking about what the government plans to do (hint I know a lot more about it than you do) but what the pcg were suggesting. If you want me to find the link to the pcg's own press release so you can apologise I will happily do so.

And you forget my main continual complaint about the pcg - that those people from there who post on here claiming to represent them do the pcg no favours in the way they present themselves.

+1.

Hell will freeze over before that happens.

[tractor]

...

If you want to argue, try finding out the facts first. Although it's a lot less fun.

But let's try a little thought experiment. Since dividend payments are not actually there to allow a small number of one-man-band contractors to beat NICs but are fundamental to how the economy works, why do you assume that merging income tax and PAYE would be allowed to result in a change in net taxation? Surely the Treasury would have to devise some mechanism that preserved the overall status quo. And if no IR35 - it would be totally redundant - why would you need to take dividends anyway? Or are you claiming that your whole working model is a sham just so you can avoid paying your fair share of taxes? Surely not...

Oh, and just as an aside, it's the administration they're talking about merging, not the taxation.

Look at PCG policy from inception to a year or two ago. Then compare it with now. Whatever has happened? You all seem to have joined HMRC. You even repeat their mantras.

You will see, the things that you are doing now will come back to bite US. And with such a benign membership, there is nothing to stop it all happening.

[eek]

Order of things to do

If you want to argue, try finding out the facts first. Although it's a lot less fun.

But let's try a little thought experiment. Since dividend payments are not actually there to allow a small number of one-man-band contractors to beat NICs but are fundamental to how the economy works, why do you assume that merging income tax and PAYE would be allowed to result in a change in net taxation? Surely the Treasury would have to devise some mechanism that preserved the overall status quo. And if no IR35 - it would be totally redundant - why would you need to take dividends anyway? Or are you claiming that your whole working model is a sham just so you can avoid paying your fair share of taxes? Surely not...

Oh, and just as an aside, it's the administration they're talking about merging, not the taxation.

I wasn't talking about what the government plans to do (hint I know a lot more about it than you do) but what the pcg were suggesting. If you want me to find the link to the pcg's own press release so you can apologise I will happily do so.

And you forget my main continual complaint about the pcg - that those people from there who post on here claiming to represent them do the pcg no favours in the way they present themselves.