Another Newbie with some questions.... sorry

**Mervalous** · 19 December 2006, 12:25

I also wondered about getting a company car (well motorbike), is this possible and easy to do? Id only be getting it so I can commute to where ever a contract is at the time, and then maybe also claim petrol?

**kramer** · 19 December 2006, 12:36

Hello and welcome... before the trolls start here is a bit of advice..

read the stickies in the other sections of the forum... they will help no end.

If you hadn't gathered already most people here willl work as limited companies.
In the long run its more flexible, more cost effective and just plain better.

Once you decide to go limited, get a bank and an accountant...then you can ask the accountant all the other stuff about cars. They will know your situation and your bank balance.

Good luck and bring on the dancing trolls!

**dmini** · 19 December 2006, 12:47

I get almost all my contracts checked every time. The only exception has been for very small pieces of work - I do a few of them - but my paid salary more than covers them

All other contracts I get checked by Bauer & Cottrell - cos they will negotiate with agency direct - takes me out of the loop. I have enough stuff to do without relaying "Co X says this clause needs to be changed........."
I also have insurance to cover - both investigation costs AND should I lose - the tax they will demand. The insurances don't always cover both - beware.
I pay the fee for the initial contract review, any extensions, where the contract doesn't change - apart from minor things like date, money, are automatically added to my cover - no additional fee paid.
Company cars are not good tax-wise - do a search. The accountants who post here have answered that on a no of occasions. You are better off generally buying your own & charging mileage.

**Troll** · 19 December 2006, 12:58

Originally posted by Mervalous

Ok I have been reading LOTS on this whole IR35 issue and then suddenly I notice that there are more changes coming up in April, I have read a bit but being new to contracting (full time for about 12 years) its a lot to take in and understand all at once.

A bit about me and what Im looking for so you can have some nice background info

Im 28 and been full time in QA for Software for about 12 years now, decided in the new year I would like to go contracting mainly to learn more skills and of course more money.
The whole umbrellla or LTD company has now confused me, I was thinking about going LTD as the idea of dividends appealed to me, then I started thinking about IR35 so umbrellla appealed to me but then now expenses so back to LTD but then I saw you can hardly claim any expenses such as daily travel to a company anyway..... ahhh see all getting confusing now

So basically Id like any advice you cna give, i have had a look through the forums but start reading then start thinking does this even apply to me?

I will be after contracts ranging from 3-12 months, will be working on clients sites during that time testing software, writing scripts etc etc.

So would you recommend going LTD, maybe first contract just being inside IR35 and wait till I have things a bit more under control? If I get offered contracts should I pay someone to inspect if its within IR35 everytime and if so would that be with the PCG?

Ill probably have more questions as we go just want to start getting things narrowed down for starters

Thanks in advance for any help and happy christmas

Male or female?

**Mervalous** · 19 December 2006, 13:25

quick one first, Male sorry

Secondly thanks for the advice, Ill probably use one of those companies such as 1st direct or orange genie, just saves all the hassle expecially when first contracting.

Can you let me know who you use for the insurance etc B&C were one company i had heard of though so i will make sure I check them out.

**malvolio** · 19 December 2006, 13:31

Basic good advice, in no particular order:

1. Go Ltd with your own company
2. Use one of our recommended accountants until you know enough to make your own decisions. All three will set up the company for you, help with bank accounts (not simple) and give good advice.
3. Read all the guides you can find, the one here and www.pcg.org.uk at a minimum. Join the PCG and use their fora - not as much fun as these, but a lot more informed
4. Do not run before you can walk. Earn some money before you work out how much to pay yourself. Take the accountant's advice, not ours.
5. Until you know what you're doing, Keep It Simple.
6. Get contracts checked by B&C or Accountax until you know what you are looking for.
7. Do not assume you know everything for at least 18 months. There will be huge gaps...
8. Recognise that IR35 is voluntary. It is not that hard to be outside it, f you are careful and know what to look for.
9. Most important - this is your company, your life, your income. Don't screw it up. Contracting is not a game.

Good luck, keep us posted

**Cowboy Bob** · 19 December 2006, 13:34

Originally posted by Mervalous

Secondly thanks for the advice, Ill probably use one of those companies such as 1st direct or orange genie, just saves all the hassle expecially when first contracting.

Wouldn't bother with a brolly. Since the chancellor's pre-budget report the only two real options going forward from April are either PAYE direct with the agency (why pay fees to a brolly when the agency will do it for free) or your own limited.

From April, all brollies will be PAYE only with no claimable expenses (well only ones that a permie would normally be able to claim, so no milage to client site etc).

**Mervalous** · 19 December 2006, 13:51

ANother round of reading and going LTD, even in IR35 its still worth it in the end and makes more sense to be learning about it rather than having to learn it all later.

I was thinking about orange genie or 1st option who will basically set up everything for me and also be the accountant, would you guys then say NOT to use them but to use one of the recommened accountants from here and do the rest myself?

I was thinking to start it may be better for me to use something like orange genie while Im still learning, Id also use the other things mentioned to get contracts checked, a lot of joining up different things at the beginning this contracting lark

Ill make a list of what i think i need to join up with soon and post it here, that way someone can just easily look and tell me what I have no doubt missed. Also that way you wont have to all keep giving me advice every 5 mins, you can just add to me ever growing list lol.

And dont worry i like a bit of banter, i go on www.visordown.com its a motorbike sight and LOADS of banter on there so Im used to it

thanks again

p.s this is what orange genie will do for me:
Set Up

We will:

* Form the limited company, with your choice of name (provided it meets the rules).
* Open a business bank account, with Barclays Bank.
* Register the company for Corporation Tax.
* Register the company for VAT.
* Register the company for Payroll

Administration

For a fixed monthly fee we will:

* Provide you with a simple system to record your transactions.
* Run your Payroll to pay your salary.
* Complete and file VAT Returns, so you get VAT back on business costs.
* Act as Company Secretary for your company.
* Provide a Registered Office service for your company.
* Complete Dividend documentation for you to be paid dividends.
* Prepare and file annual accounts.
* Prepare and file year-end payroll returns.
* Prepare and file annual Returns.
* Prepare and file Corporation Tax returns.
* Handle correspondence with HMRC (previously Inland Revenue and Customs & Excise) and Companies House.

1st option are pretty much the same, no more accountant stuff needed there is there?

**malvolio** · 19 December 2006, 13:58

Jeez... Let me try again...

DO NOT USE AN UMBRELLA.

IF YOU DO, USE A GOOD ONE (hint: not OG...)

Go to Parasol, or kill two birds with one stone and use the PCG QU one, which is set up and run specifically for people who don't know one end of a smoking gun from another.

First rule of contracting - LISTEN TO WHAT MORE EXPEREINCED PEOPLE ARE SAYING.

OK, you're on your own now. Have fun.

Another Newbie with some questions.... sorry