Reply to: Permanent to Contracting - When to hand in notice?

[TheFaQQer]

Wish I knew that when I did it!

It's in the explanatory notes for question 8 on the VAT1 form

[PurpleGorilla]

You don't need a bank account to register for VAT, but you do need to be in the process of doing so, as you just send copies of the correspondence between the company and the bank with your VAT1 form.

Wish I knew that when I did it!

[TheFaQQer]

As soon as ltd co is registered get the bank ac - as you need that set up before VAT FRS. And it all takes time. Especially this time of year.

You don't need a bank account to register for FRS - there is no space on the VAT600FRS to enter the details.

You don't need a bank account to register for VAT, but you do need to be in the process of doing so, as you just send copies of the correspondence between the company and the bank with your VAT1 form.

And if there is likely to be a gap between when starting the company and the contract start, you may be better off waiting so that you get the longest possible time for your 1% FRS discount in the first year of VAT registration.

[PurpleGorilla]

A quick update - I've gone back to the client (via the Agency) suggest a start date in Jan and they have come back to ask me to start a week earlier than the suggested date. I've provisionally agreed based on seeing a confirmation of the work order. This mean I'll likely need to hand-in my notice before seeing the contract, unfortunately. But this is probably an "acceptable" risk, I think.

I have decided to go down the "easy" route of getting an accountant to set everything up (ltd, VAT, etc...) except the bank account for me, and will initiate the process as soon as the confirmation of work order arrives in my inbox.

One question to the experienced contractors, do you register your ltd address to your home address (with mortgage) or to your accountant's address and use your home address as the correspondent address? What's the advantage / disadvantage of either? My concern using my home address as the ltd registered address is the implication on my existing mortgage.

Fingers crossed, I'll be starting a new chapter in the new year. Quite looking forward but feels a bit daunted.

Thanks all!

As soon as ltd co is registered get the bank ac - as you need that set up before VAT FRS. And it all takes time. Especially this time of year.

[TheFaQQer]

One question to the experienced contractors, do you register your ltd address to your home address (with mortgage) or to your accountant's address and use your home address as the correspondent address? What's the advantage / disadvantage of either? My concern using my home address as the ltd registered address is the implication on my existing mortgage.

I'm not convinced that having your home as a registered office would impact your mortgage, but you should also check the deeds to see whether there is anything in there that prohibits you from running a business from home (for example my in-laws can't brew alcohol at home, and I'm not allowed to run a brothel, so plan B is out...)

I use my home address as the registered office and haven't had any problem with doing so. My previous accountant would charge for the service so that was one reason I didn't do it, though.

[mokster]

A quick update - I've gone back to the client (via the Agency) suggest a start date in Jan and they have come back to ask me to start a week earlier than the suggested date. I've provisionally agreed based on seeing a confirmation of the work order. This mean I'll likely need to hand-in my notice before seeing the contract, unfortunately. But this is probably an "acceptable" risk, I think.

I have decided to go down the "easy" route of getting an accountant to set everything up (ltd, VAT, etc...) except the bank account for me, and will initiate the process as soon as the confirmation of work order arrives in my inbox.

One question to the experienced contractors, do you register your ltd address to your home address (with mortgage) or to your accountant's address and use your home address as the correspondent address? What's the advantage / disadvantage of either? My concern using my home address as the ltd registered address is the implication on my existing mortgage.

Fingers crossed, I'll be starting a new chapter in the new year. Quite looking forward but feels a bit daunted.

Thanks all!

[PurpleGorilla]

So hardly a typical example

Lol, I guess not! 😉

[TheFaQQer]

No, I am immensely talented and in a niche field that is hugely in demand.

So hardly a typical example

[PurpleGorilla]

If you get the contract and then string the client along for a month while they wait for you to get ready, and they don't move onto someone else then you are lucky.

No, I am immensely talented and in a niche field that is hugely in demand.

[TheFaQQer]

That's how I did it. Worked for me.

If you get the contract and then string the client along for a month while they wait for you to get ready, and they don't move onto someone else then you are lucky.

[PurpleGorilla]

Well that sounds like bollocks for starters.

That's how I did it. Worked for me.

[TheFaQQer]

Hand in your proper notice when there's a contract and spend a month getting your company formed, VAT registered, business bank account and accountant in place. An accountant can do all of that for you if you like.

Some of these things happen in serial so you should find you arrive out of that month ready to go and with a nice clean break.

I remember how delays of a few days feel like weeks when you're raring to get going but no one's going to pull the rug if they can see you're making proper progress.

Well that sounds like bollocks for starters.

[PerfectStorm]

Hand in your proper notice when there's a contract and spend a month getting your company formed, VAT registered, business bank account and accountant in place. An accountant can do all of that for you if you like.

Some of these things happen in serial so you should find you arrive out of that month ready to go and with a nice clean break.

I remember how delays of a few days feel like weeks when you're raring to get going but no one's going to pull the rug if they can see you're making proper progress.

[PurpleGorilla]

Andy - your logic works for me.

[AndyC]

Thanks all,

Notice period is 4 weeks and I think the client will wait but checking with them. I have made it clear directly to the client that there is a 4 weeks notice period after the contract is received.

I am inclining to wait until the contract as well.

I am in a very similar situation, 4 weeks notice and possibility of a 6 month contract. I have decided to go for it on the basis that at this time of year most business will effectively shut for 2 weeks over Xmas, so will have set their internal expectations for new projects to start in the new year. Therefore my twisted logic tells me that they will wait for my notice period, however its all very tenuous!

However, after reading through the various first timer guides on this site I followed the advice of achieving a cash buffer to keep me going if this first contract falls through. I'm using this time to set up my company and contacting other contracting agencies to put my name before them just in case my contract falls through.

So its still a risk, but I feel that I have covered them as best as I can.

Now got to think about ongoing training, in this industry (I'm an IP network engineer) its a relentless task keeping up with the skills, that is my biggest concern.

Best of luck,

Andy