1stContact

[Mr Pancamo]

Hi

I started contracting a month ago and have been using 1stContact. I have no idea about accountancy matters and would rather my accountant sorted out the most efficient wage to pay into my account, dividends etc so have gone for their fully managed solution which takes 5% of the final invoice.

I've just been reading about sjdaccountancy who charge £85 excluding VAT.

I'm on near £300 day, so 1stContact's charge does come to a fair bit every month, but as I say it's fully managed with online invoicing (including expenses), access to accountants for questions etc/

I've fired off an email to SJD, but does anyone know if 1stC offer any services that SJD don't?

Thanks

[Sockpuppet]

Go with SJD. Come april the word "managed" will bite you in the ass.

I was with 1stContact and the word "barge" and "pole" will feature in anything I tell you about them.

[Newby]

too true sockpuppet, anything that is managed and touches your money will leave you in big trouble after april 6th. You will feel alright for a while, and then Gordo and his revenue cronnies will be paying a visit for some PAYE and NIC's!

[Mr Pancamo]

Hi

Thanks for the replies.

Dumb question alert: what will happen in April that will make Gordon come after me with such a vengence?

[Sockpuppet]

They changed the tax rules. Basically you have to be "in control" of the company you are runnnig. There are lots of rules saying that you cannot calim xyz.

[Newby]

its dead easy. if someone else manages your money, then its PAYE deductions or a lot of liabilty. Best way is ltd company, + accountant and then it you dont have to change after April.

Hope this helps.

[Mr Pancamo]

Thanks for the advice. However, what's the difference between 1stContact handling my invoices and acting as accountants, and getting an organisation like SJD to do it?

[Newby]

!

I must sound like simon, but, here you go. (1st)They will invoice for you, they will revieve the money. They will make the deductions, (take the interest on account) and then pay you net after all deductions. The HMRC will see this as Managed Service Company, and the third party liability of the new legislation will have all bang to rights.

SJD will not touch your money, if they did then you would be working with a managed service company, ( you are meant to pay full PAYE and NIC on all income). can I have my virtual £5 now please. Deductions, relevant deductions to the revenue will be paid by you. You should be in business on your own account and apply the intermedieries legilsation!! Then you are happy as larry, when April 07 comes

[Mr Pancamo]

Cheers Newby. However, I'm looking at SJD's website, and some of their services are;

Preparation of Company Year-End Accounts to be produced within 30 days of us receiving all the relevant information from you.
Preparation of abbreviated Company Accounts where appropriate.
Director's personal tax return. The first income tax return that we shall be dealing with is for the year ending 5th. April, 2008.
Corporation Tax Computations.
Completion of VAT returns.
Dealing with the Inland Revenue.
Dealing with Companies House.
Payroll administration.
Electronic filing of forms P35 and P14.
Completion of form P11d and P14.
Provision of advice about IR35
On-going tax and accountancy advice throughout the year.

This is basically the same service that 1stC offer my limited company....and they (1stC) don't invoice for me, I invoice the agency and they pay the funds into my limited company's bank account. I have set an earnings level with 1stC that then instructs them to pay a certain proportion into my personal account and retain the rest in the business account. They also deal with IR and CH.

I'm sorry if I'm going over old rope, but is the above description actually a managed service company? Like I said, I'm fairly new to contracting so gratefuly appreciate any advice. For me, the intial problem was how much 1stC were charging for their services....

[Sockpuppet]

Listen. Don't use 1stContact.

We have all said go with SJD or Darren (who used to be 1st acc serv). Both post on this site. Running your own Ltd is easy. You will get more £££ in the bank. Go with 1stContact however running your own LTD will give you more money. Nearly £2000 better off.

So in short.

SJD / Darren = Good
1Contact = Bad (well in my opinion anyway)