• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

First Time Contractor - Setup a Ltd company after I find contract or setup before?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    First Time Contractor - Setup a Ltd company after I find contract or setup before?

    Hello,

    I am a newbie and after much research, I have decided I'm definitely going to go contracting and going via the Ltd company route.

    I now know all the necessary stuff I need to do but I don't know in what order I need to do them in, therefore any advice & guidance much appreciated.

    My main question is do I first find my first contract, and after winning that contract, then decide to set up my Ltd company (register with company house, getting in touch with an accountant, setting up a business bank account etc)?

    Or, Do I do all of that first, only then hunt for a new contract as the very last step?

    I've read a lot over the last 8 months on all the stuff that needs to be done for all avenues but none tells you in what order you perform them. Hence I'm asking here.

    Many Thanks in advance

    #2
    Have you tried the newbie guides to the right. I don't think there is a standard as it depends on the situation. A quick start gig will need different priorities to one you have a week or two to complete.

    A good start would be to get yourself an accountant and let them guide and help you. They'll get the money and company side sorted with you.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      I personally started off using an umbrella to get the gig going and then spent three months working out what I needed to know / do. That covered all my insurance, bank account requirements, etc. and made sure I was super compliant while I navigated a rather steep learning curve.

      Once I was happy, I set up my LtdCo and binned the umbrella. Most agencies have no issue doing this mid contract but you can always do it at renewal instead if your agent is a numpty.

      Your circumstances may be different but you may find it hard to land a gig if you don't have certain items in place before the contract start date (company set up, VAT registration, bank account, insurances). VAT takes a little while and you have to make sure you invoice correctly while your application is going through. Bank accounts can also drag on due to the KYC and AML requirements these days. Quicker to achieve if you open an account with a bank you use personally. Insurances and company creation are quick.

      As NLUK says, an accountant is key. They will guide you through the process and should be the first 'set up item' on your to do list.

      Comment


        #4
        If as you are say definitely going contracting I would set up a Ltd Co and have an accountant lined up - so you are ready to go with a potential agency.

        You can set up a company quickly :https://www.contractoruk.com/online_...ion_agent.html

        And speak to a few accountants in advance (who can also get a company set up for you if preferred)

        Comment


          #5
          thanks for the info guys. The links on the left are surely very helpful. My brain is full of information now.

          I now know my first step is probably to get a contractor accountant onboard first and let them guide me through the setup process then I will be in a ready position to start hunting for contracts.

          Comment


            #6
            Originally posted by firstTimeNewbie View Post
            thanks for the info guys. The links on the left are surely very helpful. My brain is full of information now.

            I now know my first step is probably to get a contractor accountant onboard first and let them guide me through the setup process then I will be in a ready position to start hunting for contracts.
            It only costs something like £15 to register a LTD. Just do it.

            Then spend a few hours reading about it all on Google. If you're intelligent, it's really not that hard to figure out.

            Comment


              #7
              Originally posted by Matt88 View Post
              It only costs something like £15 to register a LTD. Just do it.

              Then spend a few hours reading about it all on Google. If you're intelligent, it's really not that hard to figure out.
              Awful advice. But thanks.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Better advice than Matt88's is to read this site's guides (tick...) and also go to www.ipse.co.uk and get their Guide to Freelancing. It covers a lot of things across the whole spectrum of freelance work, quite a few of which you may not have thought about.
                Blog? What blog...?

                Comment

                Working...
                X