Redundancy, When to set up new Company and preparing to Contract

**northernladuk** · 21 March 2016, 13:10

Answers to most of your questions, and a whole load you've not considered yet can be found with a fairly simple Google Search, in the Guides to the right or probably best, by searching the forums. Everything a newbie can think of will have been covered plenty of times...

http://forums.contractoruk.com/welco...uk-forums.html

But let's have a quick pop.. A company can be set up in a day or two and the accountant you use can do that for you or you can do it yourself. Personally I'd pay a little bit for them to remove the hassle. VAT and bank accounts can be done once you are on site so not urgent. Just your company name for the contract to start with.

A new accountant will help you get set up but no harm in doing some research first. Give them a ring and engage with them, they will then give you the best timeline. There is a thread on accountant recommendations or it gets asked almost weekly so use the search linked above to find the thread.

Training to shore up what you already deliver can be expensed though the company. You cannot put it through the company if it is to learn new skills or associated stuff like an MBA etc. Remember also any expenses still come out of your pocket ultimately. All you get is a discount.
I wouldn't go overboard either. Certs mean nothing without experience and experience counts for much more.

Yes, IT kit can be bought by the company. The guides to the right or search will help you find exactly what can and can't be expensed. Googling contractor expenses or something similar will find some good guides. Read those before asking about everything on here.

You obviously won't have money to pay for this stuff so speak to your accountant about how to manage it. Also make sure you speak to them about VAT and the 2k limit and FRS etc... or read up on it....

Lots to do.. Keep going....

**fka001** · 21 March 2016, 13:59

Thanks for your response.

Believe me I have been doing my research since I was told my role is at risk 2 weeks ago.

Ive googled and narrowed search to a few accounts and other things a first timer needs to know including several articles on first timers on this site.

I have a rough idea of answers for each aspect of my questions but there are lots of info out there ( some conflicting) and its nice to get everything in a concise way and any personal experience is always good to hear..

**PerfectStorm** · 22 March 2016, 20:18

Do it - I used redundancy payout as a safety net to start my company and it's worked very well

Accountants - basically just go to Nixon Williams.

**clone16** · 23 March 2016, 18:13

Another noob

Hi All,

I came here looking for exactly the same information as the OP. I was made redundant last year and took a break to "rethink" what I would do next, after (too) many years in one place.

Many friends have encouraged me that self employed is the way forward. There is a lot to consider and considerable information, sometimes confusing, out there for new starters such as myself; company before contract or contract before company not being the least of them, so it's good to find a vibrant and helpful community to become a part of.

I'm hoping to reference some of the guides I've found here (and pick the collective brains of experienced forum members) and become a successful IT contractor.

**DallasDad** · 23 March 2016, 21:16

I took VR from HP last year
Moving into contracting for me has been relatively painless with one exception, I went Umbrella first.
I wish I had not bothered it made life seemingly 'easier' but has cost me a lot (as in £000s' in tax that I could have put in my Sipp.

I have now gone Ltd using Gorilla as my accountants and to do most of the setup work
The thing that could take the longest (excluding getting your first contract) is setting up a business bank account it just drags on for a week or three or longer...
If you allow a month end to end to set up your myco that should cover it.

Gorilla did not charge for the first two months - probably because there isn't much to do accounting wise that gave time for a few invoices to be processed before they needed paying.

Agencies will probably only be interested in you when you are a week or two away from leaving permiedom but if you have rare skills no harm in applying sooner just don't be put off if you hear diddly squat.

Use your three months to good effect are you getting out placement support?
If so use them especially the CV and coaching services offered and get your linkedin profile done at the same time.
You should be entitled to time off to seek alternate employment, use it.
If you are interview rusty apply for a range of jobs. If you are lucky you will get some useful interview practice even if the job itself is tulip the interview will be worthwhile.

Apply for work that you are expert in don't try to do a career path change and become a Contractor.
Someone was on here a few days ago asking if reading few books and taking the odd online training course or two would be sufficient to try contracting as a Business Analyst!
Clients want and are paying for your years of relevant experience. I am an IT PM I would not try to PM building a new Office Block or a Spaceship I might be able to wing it but I doubt it.

Good luck - now go and read everything on here to the right (that is not too out of date, some of it is) and digest it all then read it again.

**DallasDad** · 23 March 2016, 21:20

PS I am not sure there is a glossary here.
When I first started using this forum I had no idea why I kept reading the word tulip everywhere.

Basically it = do Bears tulip in the woods

HTH.

**fka001** · 26 March 2016, 20:37

Thanks everyone for the helpful comments.

Im a hybrid Delivery lead/Product owner/scrum master hence the reason I plan on doing certification in a couple of areas - Prince 2 and Scrum just to firm up my CV. I'm hoping to focus on Delivery Manager roles but they tend to be similar to PM roles hence the reason for Prince 2. I know certification is not a guarantee of a job but Im confident of my skills, just need the certs to get me noticed as most jobs I have seen mention those.

Having spoken to two accountancy company , Ive settled one one which allows up to 6 months payment holiday but both have advised setting up the company closer to the time so I hope I wont need 6 months to find a permie role.

I also asked the companies about courses and tech gear as I will be buying a new Ipad /computer so I can swot up on the go etc. I have both already but computer is owned by work and iPad is old and a tad slow. They said I could transfer the assets to my company which should help reduce the company's tax liabilities ( i think) . Courses ( I'm told ) may be more difficult to claim for but should be money well spent regardless.

I also plan on going for a few interviews to get interview ready especially in relation to contracting as I dont know how different that is from permie roles.

Would be grateful for any other hints and tips.

**northernladuk** · 26 March 2016, 21:13

I'd speak to your accountant about expenses. I'd be interested to see what their take on the iPad for business use is. I know plenty of people that bought them through the company but I'm struggling to think of one that genuinely uses for anything work related at all. Remember with expenses it isn't free. It still comes out of your pocket albeit at a discount. Got to weigh up that discount really is worth flying a bit too close to the wind for.

Redundancy, When to set up new Company and preparing to Contract