First timers checklist

[NomDePlum]

I have just secured my first contract and had it checked by Bauer & Cottrel (slight amendments negotiated by them to be outside IR35 and agreed by agency, so win-win there).

I am pretty confident having read the first timers guides and monitored the forum for advice but thought I would double check by posting here to see if there are any more things/steps I should be considering.

Here's what I have done:

1. Formed Ltd. company via SJD Accountancy
2. Registred for VAT as part of 1.
3. Opening business bank account with Carter Allen (again as part of 1)
4. Secured contract and made sure it is outside IR35 by having review by Bauer & Cottrell

Here's what I think I still have to do:
1. Register domain name to match company name
2. Sign up with SJD Accountancy to handle my company accounts
3. Sign up as member of PCG on PCGPlus
4. Register for PAYE (havent done yet but is part of SJDs company formation service I believe)

Part of doing 3 is so that I can gain insurance cover. Other than the insurance that comes as part of PCGPlus is there any other types I should consider?

[malvolio]

Sounds good to me, well done. Nice to know the guides work when people use them properly!

The website is not high on the priority list, to be fair, but it does no harm. Use SJD and lean on them for advice while you're on the learning curve; they will pick up and sort all the various detail things like PAYE and so on.

You should get a company debit card (do Cater Allen do them?) for routine expenses, rather than faff around with expense claims. Way more efficient.

PCGPlus is all you need for risk mangement. Your contract may demand PI insurance, but you can't beat the PCG-discounted Randall Dorling PI/PLI/EI offering on their website unless you're in a very non-standard business model. For £210-ish it's probably worth doing anyway. If (sorry, when; it's a no-brainer!) you join PCG use their fora: there is far more good, comeptent advice on there than anywhere else (and I include my own contributions to CUK in that!).

Good start, though - keep it up.

[Mordac]

You're actually better off getting the domain name first and then finding a company name to match. Easiest way is to get an expired domain list (google for info).

Just my 2p worth.

[TheMonkey]

Aye - my web site has a blank page at the moment. Not needed it at all. It's only really needed for B2B stuff.

[Lucifer Box]

You should get a company debit card (do Cater Allen do them?) for routine expenses, rather than faff around with expense claims. Way more efficient.

Well done NomDePlum, you are a credit to first timers. You have done your research, formed a plan and are asking sensible questions. You have clearly considered your move into contracting carefully and I'm sure you will do well. Have a glance back through the forum here for other first timers asking for help and you will wonder how some of them manage to tie their own shoelaces in the morning.

On Malvolio's point, yes, it is a good idea to get a company debit card and Cater Allen do do one at no charge. However, if you are expecting the company to buy any high value items it may pay you to buy the item on the company's behalf using your own cash back credit card and claim back the money from the company. It's always nice to get some free money after all.

Be aware that Cater Allen charge banking fees if the account has less than £5,000 in it, so if you can open the account with that much to start with that will be a little money saved. You can loan the money to the company and the company can repay it once you have banked fees more than £5,000. SJD will advise you on this.

Oh, and remember, agents are not your friends. They will try to screw you if they can, so keep your head on, keep your eyes open and stay cool. IT Contractor has lots of interesting and humorous articles on the pitfalls and perils of contracting.

Welcome to contracting.

[Swashbuckler]

Any chance this being a sticky?

[NomDePlum]

Cheers for the replies and compliments. Most unexpected. Just shows that the few beers and half a bottle of wine (in celebration mode) that I had prior to posting don't always have the adverse effect you would expect.

Good advice on the debit card (and yes Cater Allan do provide one), although I don't expect too many expenses initially as the site I will be working on is within walking distance!

I agree the domain registration is fairly low on the list. Its more for the email address than anything else. I just want to move away from the gmail.com one I am using just now to give any company communication a more professional look (smoke and mirrors, if you know what I mean?).

Good advice on leaning on SJD for advice. So far they have been pretty responsive and helpful. Must remember to start paying them for their services! I'll have to see if they can do anything about the interest on the bank account as I don't have that sort of cash to put in at the moment. If not I will just have to put it down as a business expense and try and get my invoices turned around asap.

Again cheers for the advice and have to say although I will be checking out the pcg forums (malvolio) I will definitely keep an eye on this one as even the serious posts can be funny while still letting you learn something.

[rootsnall]

Sounds good to me, well done. Nice to know the guides work when people use them properly!

The website is not high on the priority list, to be fair, but it does no harm. Use SJD and lean on them for advice while you're on the learning curve; they will pick up and sort all the various detail things like PAYE and so on.

You should get a company debit card (do Cater Allen do them?) for routine expenses, rather than faff around with expense claims. Way more efficient.

PCGPlus is all you need for risk mangement. Your contract may demand PI insurance, but you can't beat the PCG-discounted Randall Dorling PI/PLI/EI offering on their website unless you're in a very non-standard business model. For £210-ish it's probably worth doing anyway. If (sorry, when; it's a no-brainer!) you join PCG use their fora: there is far more good, comeptent advice on there than anywhere else (and I include my own contributions to CUK in that!).

Good start, though - keep it up.

Am I correct that all I miss out on by only having standard PCG membership is the initial PAYE audit cover ? I know this is the initial taxman entry point to any eventual IR35 investigation but I like gambling. What does a PAYE audit comprise of ?

[malvolio]

The difference is that standard membership covers you for a tax investigation, i.e. they have found something they think is wrong and are chasing you for payment. PCGPlus covers the initial PAYE Audit, which is how most IR35 cases start off: the logic is that professional representation at that point will head off 90% of further investigations. In practice, if the brown envelope arrives nominating you for a PAYE audit, call the office and stand back.

Do not skimp on it; apart from the likely cost of an IR35 investigation running at around £55k (set that against the cost difference between standard and Plus), it's also 2-3 years of doubt and uncertainty. The best way to deal with it is not to start!

[Sockpuppet]

Does the PGC Plus cover not IT contractors (i.e. Logistics bods like myself).

Cheers
Richard