Help in a nutshell

[cojak]

Help in a Nutshell....

Welcome to CUK spottedh!

You'll find a lot of answers to your questions within the CUK website.

On the right you'll find CUK Navigation. >>>>>>>>>

Look down and you'll come to the First Timers section. Have a read through there.

Basic expenses questions answered here: Contractor Expenses - How to claim Travel and other expenses via Limited Company or Umbrella

Then pay particular attention to IR35.

If you go into the Accounting/Legal forum you'll discover the thread Basic advice when running your own contractor business.

Guide to Contracts also has some good articles.

Do you want advice on the state of the contract market for your specialism/location? Have a look at this website; it will answer most if not all of your questions: IT Jobs Watch, Tracking the IT Job Market

But you need to know what is coming at you (and us) next year so take a look at these threads as well:
You are probably not going to like this - we certainly don't
Public Sector IR35 consultation launched

And finally - accountant recommendations - Ta-da!

Happy reading!

[NotAllThere]

Step 1. Find an accountant.
Step 2. Talk to your accountant.

Your questions are rather naive and require professional advice. Don't rely on advice from a bunch of largely unqualified strangers on the internet.

[spottedh]

Hey all, first time here.

So, I have been a perm employee all my life, and now have an opportunity to do contract instead, and become self employed. I would be contracted for a single company, and essentially invoice them once a month for a fixed amount (salary like) and any incurred expenses. Pretty straightforward, but as expected many people (friends etc.) have said this that and the other, so now I need to ask a few questions.
The information below are example numbers
1. I charge £4000.00 per month, and I spend £1000.00 in expenses (ave) per month

Do I calculate the HMRC taxable amount on the £4k or on the £4k less expenses (£3k)

Have been told its the £3k

What happens if I have expenses in one month of £3500.00 but my income is only £4k for that month? Do I still maintain that the taxable amount is calculated on the remaining £500.00