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Just starting - advice please?

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    Just starting - advice please?

    Hi,
    My first contract starts in a weeks time. Initially it is full time for 3 months - probably renewable.
    My wife and I have had a small Ltd company for a couple of years - we have been developing a web software product, but as yet no significant income (hence me taking a contract). We will both continue with the software devt, albeit at a slower pace.
    My questions are:
    1. I have assumed I will do the contract through our ltd company - any obvious upsides or downsides?
    2. I had originally thought that I might escape IR35 and pay my wife a salary (she really does work about 25 hours) - however, having looked at some of the posts here I now think this is probably not possible - true?
    3. I feel inclined to do my own accounts (which I have been doing for our small business anyway), and payroll - can someone point me to good guidance notes / tutorial / software for this - do other people do their own payroll?
    4. What else do I need to know about?

    Thanks for your help,
    Alfred.

    #2
    1. Good assumption; no real downsides.

    2. You can pay your wife, as she is working on the non profit making web design bit of your company. IR35 applies to indiviual contracts, so is independent of your wife working on your web design stuff.

    3. @#%$ that. An accountant should cost you under £1000 a year. Unless your contract is a badly paid one, just take it as a cost,. You're an IT guy not an accountant. Imagine how little you (and I) would earn if every accountant, plumber, manager etc fixed their own IT issues.

    4. Don't waste too much time on the web design stuff unless you've already done some research and have predicted imminent profit.

    Comment


      #3
      Be wary of doing it yourself, if you make a mistake the IR maybe round there and when the IR do an investigation they will usually find something, each little mistake comes with a thousand pound price tag.

      An ex colleague of mine forgot to fill a field out on the form, which prompted an investigation. The IR soon clarified the mistake, but then preceeded to go through 5 years of accounts and he ended up paying about £12000 in penalties.

      Once the IR decide to investigate they won't go away without a few grand in their pocket.

      Comment

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