benefits of contracting ?

[LisaContractorUmbrella]

Eh? You said that in the plural, as if there's more than one. Surely everyone's "profit strategy" is "maximise it".

How would you recommend that it done?

[Earl Purple]

Benefit: usually more money, both because contractor rates are higher, and that if you stay outside IR35 the tax is lower too, plus as you have said you have certain allowable expenses.

In theory the disadvantage is that your job is less secure. In practice it isn't really as permie jobs are not secure. You may need to beware though that you may find it very hard to go permanent later. It is not the case, I have found, that permanent jobs mean you can acquire skills whereas in contract roles you must know them all already. That should be the case (thus justifying trainingas part of the business) but doesn't seem to be in practice.

Personally I do not understand why I would want to enter a "permanent" employment unless I have worked there already as a contractor so built up a relationship with them, know I fit into the culture of the company and know there is a long term strategy with work ahead of me to do for a foreseeable period of time. In that case we could talk about a "long-term" contract that would fall inside IR35 and therefore be seen as employment.

[northernladuk]

Eh? You said that in the plural, as if there's more than one. Surely everyone's "profit strategy" is "maximise it".

The BN66 guys have "maximise it" and "try not give it all back"

[aoxomoxoa]

Eh? You said that in the plural, as if there's more than one. Surely everyone's "profit strategy" is "maximise it".

Mine's maximise it and keep it

[billybiro]

profit strategies

Eh? You said that in the plural, as if there's more than one. Surely everyone's "profit strategy" is "maximise it".

[northernladuk]

They are read and approved.

Generally we give them to NLUK.

FTFY

Nom nom nom....

[cojak]

They are read and approved.

Generally we give the benefit of the doubt in the Professional forums.

[SueEllen]

I thought first posts were read and approved.

If they are then these shouldn't be let through.

[cojak]

Hmm, the same question being asked by two low posters in two days scenario... Never see that before

I thought sockie trolls were clever on this forum....

They may not be sockies, just people coming to the site via Tapatalk.

If you are OP, I would suggest looking at the website as well as the forums, the information to the questions you're asking can be found there.

[northernladuk]

Hmm, the same question being asked by two low posters in two days scenario... Never see that before

I thought sockie trolls were clever on this forum....

[cojak]

Sigh...



CUK - Contractor Expenses

[GillsMan]

Hi,

I am new to contracting. I have an accountant but don't think he is giving full advice. I know I need to change him but I thought I will ask in this forum what can I claim with a limited company ?

for instance the other day my friend said I could claim childcare but my accountant did not mention anything about this. So does any one have a complete list of things that I could claim through my limited company ?


Also is IT certification expense allowable because my accountant says certification is something I will gain and can be used elsewhere (if looking for permanent job) and this is not wholly for the limited company, is this true ?

Thanks

OK, you're going to get a little flamed for that question, and here's why: there is no exhaustive list of what you can "claim with a limited company". And the reason should be fairly obvious: we all do different things. If you're running a baking enterprise, you can probably claim for a new roasting tin, whereas an IT consultancy couldn't. Even within IT contractors (which most of us are) what each of us can and should claim varies wildly depending on type of business, aversion to risk, profit strategies and so on.

Claim an iPad through your company if you want. Others wouldn't. Put a new executive chair through your company if you so please. Others wouldn't. I've put lots of things through my company that some people wouldn't and the opposite is also true. It's my company and I will put different things through expenses to you. Because our companies are undoubtedly different.

IT certification generally isn't allowable because of fairly bonkers HRMC rules. To be perfectly honest, I have claimed for things like books which boost knowledge, and even a few training courses with no problems. But then I am a genuine business, so frankly I put that sort of stuff through.

Childcare vouchers can be claimed, but not sure why your accountant would advise you of this unprompted. My accountant gives me loads of advice to save me lots of money, but I still need to have some ideas about my circumstances so that I can ask my accountant accordingly.

As to your thread title: the money and the power.

[kevpuk]

[krssubbu]

Hi,

I am new to contracting. I have an accountant but don't think he is giving full advice. I know I need to change him but I thought I will ask in this forum what can I claim with a limited company ?

for instance the other day my friend said I could claim childcare but my accountant did not mention anything about this. So does any one have a complete list of things that I could claim through my limited company ?


Also is IT certification expense allowable because my accountant says certification is something I will gain and can be used elsewhere (if looking for permanent job) and this is not wholly for the limited company, is this true ?

Thanks