That initial interim period

**cojak** · 31 July 2014, 17:12

Welcome Kayman!

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.

And here are the rules when using company credit cards: HM Revenue & Customs: Credit, debit and charge cards

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.

And finally - accountant recommendations - Ta-da!

Happy reading!

**DiscoStu** · 31 July 2014, 17:24

Originally posted by KayMan View Post

Hey Folks,

Newb here, but no excuse to sounding ignorant. So I've been crawling this site for some time now, every since I decided to go into contracting for good. So, this week I've accepted an offer and Im due to start next week.

I'd like to think I've done enough research on this, which I did, but there are still things that I just dont get, especially in the initial 3-4 weeks as things are being set up etc.

For instance, on the issue of invoicing. Im aware now what to do when invoicing while VAT is being registered, no problem. But then this came to mind, the business bank too takes a couple of weeks to setup. So the question is, where would I ask the client to send the money to in the mean time!? Is this a non-issue?

Cater Allen faffed about for ages getting my account set up. Went into HSBC and they set it up for me in half an hour and gave me the sort code and account number straight away.

Which bank are you using?

**barrydidit** · 31 July 2014, 18:14

Originally posted by DiscoStu View Post

Cater Allen faffed about for ages getting my account set up. Went into HSBC and they set it up for me in half an hour and gave me the sort code and account number straight away.

Which bank are you using?

This.

I landed my first gig in my last week of permiedom. Didn't have anything set up but I knew all I needed for paperwork was a sortcode and account number so I called to see what was possible, explaining the situation. The main issue being that you don't need cards and cheque books immediately, just an account number allocating. Lloyds was a non starter (post and fax related complications) but HSBC got what I was after straight away, phoned round local branches to find a business adviser who was free and it was all done within 6 hours. Couldn't fault them for that.

**KayMan** · 31 July 2014, 23:32

Originally posted by DiscoStu View Post

Cater Allen faffed about for ages getting my account set up. Went into HSBC and they set it up for me in half an hour and gave me the sort code and account number straight away.

Which bank are you using?

None yet because I actually just started the process this morning so just awaiting the accountant now. They are trying to push me in the Cater Allan direction, but obviously that's optional, I can go with any bank. I heard good things about HSBC too, don't mind them at all. I though CA was the industry standard because they don't charge you so long as there is a set amount in the account at all time?

Thanks for advice. But I suppose the question still holds, for contracts who do not have a bank account yet set up, like the CA situation, would they hold off on invoicing altogether? Maybe later back date some invoicing when the account is all good to go?

See here is the thing, all accountants that Ive been speaking to over the past couple of months kept saying no need to start the process up until you get an offer, because then your paying for something you are getting nothing out of. Fair enough, but now Im like if I had done all of this say 2 or 3 weeks ago, things like VAT registration, bank account setup, even the limited formation, then it would have been much simpler now. But again, it took me a month of randomness between my last perm role (which had a 3month notice period - yikes I know) to now landing a contract. It could have very well taken longer - so I get both arguments.

**barrydidit** · 1 August 2014, 07:41

Originally posted by KayMan View Post

None yet because I actually just started the process this morning so just awaiting the accountant now. They are trying to push me in the Cater Allan direction, but obviously that's optional, I can go with any bank. I heard good things about HSBC too, don't mind them at all. I though CA was the industry standard because they don't charge you so long as there is a set amount in the account at all time?

Thanks for advice. But I suppose the question still holds, for contracts who do not have a bank account yet set up, like the CA situation, would they hold off on invoicing altogether? Maybe later back date some invoicing when the account is all good to go?

See here is the thing, all accountants that Ive been speaking to over the past couple of months kept saying no need to start the process up until you get an offer, because then your paying for something you are getting nothing out of. Fair enough, but now Im like if I had done all of this say 2 or 3 weeks ago, things like VAT registration, bank account setup, even the limited formation, then it would have been much simpler now. But again, it took me a month of randomness between my last perm role (which had a 3month notice period - yikes I know) to now landing a contract. It could have very well taken longer - so I get both arguments.

Have you got the contract paperwork? That will detail the payment schedule. The best I've had is weekly invoicing and weekly payments but that's still going to give you a fortnight from today (assuming everything else is in place and you start on monday). If it's monthly invoicing and payment ten days after then you'll have loads of time to sort it out.

But to specifically answer your question, yes, the agency aren't going to mind keeping hold of your money for you for a week or so. Just make sure you've got any timesheets authorised by ClientCo so the agency gets the cash through to them in good time.

**GazCol** · 1 August 2014, 08:27

Originally posted by KayMan View Post

Hey Folks,

Newb here, but no excuse to sounding ignorant. So I've been crawling this site for some time now, every since I decided to go into contracting for good. So, this week I've accepted an offer and Im due to start next week.

I'd like to think I've done enough research on this, which I did, but there are still things that I just dont get, especially in the initial 3-4 weeks as things are being set up etc.

For instance, on the issue of invoicing. Im aware now what to do when invoicing while VAT is being registered, no problem. But then this came to mind, the business bank too takes a couple of weeks to setup. So the question is, where would I ask the client to send the money to in the mean time!? Is this a non-issue?

It's not worth fretting about.

In the time between signing the contract and sending your first invoice there should be ample time to set up a business bank account. Do you know what your payment terms are? If you're direct don't expect your invoice to be paid the day it is sent, the terms are usually 30, 60 or 90 days.

**northernladuk** · 1 August 2014, 09:17

Have you signed up to an accountant yet? If not, do so.

**KayMan** · 1 August 2014, 13:33

Turns out in this case it will be a non issue since invoicing is going to be monthly not weekly. In a month time we'd have VAT + BB setup so would dovetail nicely. I'd still say if I knew better I would start things earlier, even if I didn't have an actual offer, I'd be ready for it when it comes. Instead of having to faff about for a week (losing a week's pay, and arguably costing much more than starting working with an accountant a couple of weeks earlier).

That initial interim period