starting new contract & just set up ltd now need accountancy advice starting new contract & just set up ltd now need accountancy advice
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  1. #1

    Nervous Newbie


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    Default starting new contract & just set up ltd now need accountancy advice

    Hi,

    I am just starting out as a contractor. I have a contract starting July 8th (£125 p/day - i know its not much but it is a start). I will also be doing other projects on the side building small websites for sole traders etc.

    I have just used the government website to register a ltd. Do I need an accountant? I have no idea about these things so I am assuming I do.

    Can anyone recommend one that doesn't cost too much as I don't think their workload will be much dealing with me. I also want someone who has a software system for putting invoicing together.

    Also do I need indemnity insurance when I start this contract or is that something they will request. I haven't seen the contract yet, I only got the call saying I landed it on Friday.

    I hope someone on here can help me, I know I am small fry at the moment - but I hope to grow and I think I will be able to grow the website building side of the business as I have had lots of interest. The contracting company has agreed to a 3/4 day week so I can still work on building my business.

    many thanks in advance.

  2. #2

    More time posting than coding


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    I use Myaccountancyonline. You get a personal service and they can set up you up with software very cheaply too. Only used them for 3 months so far but seem very competent. You have to do your own bookkeeping though, but that is the same for any low cost accountancy.

  3. #3

    Still gathering requirements...


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    Quote Originally Posted by amp3rsand View Post
    Hi,

    I am just starting out as a contractor. I have a contract starting July 8th (£125 p/day - i know its not much but it is a start). I will also be doing other projects on the side building small websites for sole traders etc.

    I have just used the government website to register a ltd. Do I need an accountant? I have no idea about these things so I am assuming I do.
    Have you searched the forum beforehand? Most people recommend that you don't go for a Ltd if your rate is below a certain threshold - which I can't remember exactly but for your rate umbrella should have been better.

    I use SJD Accountancy, just started using them last month but so far so good. They're not cheap (£110 + VAT monthly), but they do everything for you, even your personal Tax Return (provided you paid already 12 months with them). I prefer paying more money for a good service - after all, I do understand very little about accounts and I'd rather have help from an expert. Only downside with them is that they give you an Excel spreadsheet for keeping track of your money and I quite don't like Microsoft Office

  4. #4

    Contractor Among Contractors


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    I really wouldn't worry about someone supplying invoicing software; a template in excel or word does the job. There are plenty of examples out there. Unless your business model is particualry complex, anything else becomes overkill.

  5. #5

    More time posting than coding


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    Quote Originally Posted by amp3rsand View Post
    Hi,

    I have just used the government website to register a ltd. Do I need an accountant? I have no idea about these things so I am assuming I do.

    Can anyone recommend one that doesn't cost too much as I don't think their workload will be much dealing with me. I also want someone who has a software system for putting invoicing together.

    Also do I need indemnity insurance when I start this contract or is that something they will request. I haven't seen the contract yet, I only got the call saying I landed it on Friday.
    Well if you are completely comfortable in filling your company's accounts with HMRC & Companies House, doing the Company's tax return yourself, and the self assessment tax return for you as Director, operating a payroll scheme to ensure you calculate & pay the correct PAYE, carrying out dividend administration, and dealing with HMRC, paying the correct VAT then sure you don't need an accountant!

    Ultimately (of course I am biased) there are so many penalties these days where you get things wrong, for less than £2k annually worth the piece of mind if nothing else (and most accountants will save you tax also!).

    We recommend our clients get PI insurance.

    Good luck!

    Andrew

  6. #6

    Contractor Among Contractors

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    Quote Originally Posted by amp3rsand View Post
    Hi,

    I am just starting out as a contractor. I have a contract starting July 8th (£125 p/day - i know its not much but it is a start). I will also be doing other projects on the side building small websites for sole traders etc.

    I have just used the government website to register a ltd. Do I need an accountant? I have no idea about these things so I am assuming I do.

    Can anyone recommend one that doesn't cost too much as I don't think their workload will be much dealing with me. I also want someone who has a software system for putting invoicing together.

    Also do I need indemnity insurance when I start this contract or is that something they will request. I haven't seen the contract yet, I only got the call saying I landed it on Friday.

    I hope someone on here can help me, I know I am small fry at the moment - but I hope to grow and I think I will be able to grow the website building side of the business as I have had lots of interest. The contracting company has agreed to a 3/4 day week so I can still work on building my business.

    many thanks in advance.
    You're right, £125 is low (i'm not trying to take the p155, if you negotiated this direct with a client then fair enough. However, if you're going via an agent, understand that he may be getting £300+ per day from the client and giving you £125 of it - not a bad little number for him for sitting on his arse all day - just something to be aware of in the future).

    I would recommend getting an accountant, definately - although you will find that their fees are a big chunk of your ltd co's income.

    Definately get PI, you never know what could go wrong.

    Good luck with it all anyway
    Contracting: more of the money, less of the sh1t

  7. #7

    My post count is Majestic

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    Read all the guides to the right... when you have done that read em again.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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