New to Contracting

**EvilWeevil** · 25 June 2008, 07:53

You can set up a company in a day. Getting VAT registered will take weeks, but you can invoice, VAT pending (someone wiser will remember the exact phrase) in the meantime, then when your VAT registration comes through, bill for the outstanding VAT.

**KevinS** · 25 June 2008, 07:57

Originally posted by MacBoy View Post

I can't see how there'd time to set up a Ltd Co. and get it VAT registered to coincide with the start of the gig; so what would you gentlemen/ladies advise in this situation - is it possible/advisable to go with a brolly in the meantime, then transfer once everything is set up?

Many thanks
Mac

A limited takes no time at all to set up.. Online services can do it in a day or so.. VAT reg takes a bit longer, but all you need to do is put:

VAT Pending

on your invoices until it comes through, then just send the company an invoice for the outstanding VAT referencing the invoices you have sent to them.. And make sure you register for the FRS with the VAT reg..

**MacBoy** · 25 June 2008, 08:00

Many thanks indeed gents.

**VectraMan** · 25 June 2008, 08:00

WHS.

You'll probably find it'll take at least a week to get a bank account sorted too. But the important thing is getting the Ltd. so you can sign the contract and start earning the money, even if it takes a couple of weeks before you see any of it.

No point dawdling. Do it today.

It's certainly easier to go umbrella to start with, I did, but it will cost you money.

**TheBigYinJames** · 25 June 2008, 08:07

Originally posted by VectraMan View Post

It's certainly easier to go umbrella to start with, I did, but it will cost you money.

Not as much as an accountant costs though, the extra money you'll get as a limited is mostly in savings you might get from being more tax efficient and not doing everything through PAYE.

As a newcomer I'd say go ahead and do the Ltd thing, it's a real buzz at first. If you manage to avoid any tax entanglements, life is good. i had a bad tax scare in the 90s, so closed down the Ltd and do everything with a brolly now. I prefer to trade a bit of potential extra cash for an extremely easy and stress-free contracting life.

**malvolio** · 25 June 2008, 08:30

Originally posted by TheBigYinJames View Post

Not as much as an accountant costs though, .

Rubbish. Mine costs around the same as Parasol's usual fees anyway, but if an accountant costs you money they're not doing their job properly.

**SueEllen** · 25 June 2008, 08:30

When setting up your company bank account it is quicker to physically go into the bank branch and set up the account. Just phone up the bank and ask what documentation you need first before you pay a visit.

If you don't like the bank you are using or find a better banking deal you can always move your account later.

**TheBigYinJames** · 25 June 2008, 08:32

Originally posted by malvolio View Post

Rubbish. Mine costs around the same as Parasol's usual fees anyway, but if an accountant costs you money they're not doing their job properly.

Obviously they'll save more than they cost, I'm not arguing that side of it.

My brolly costs me about £60pcm, not sure you can get a full year's worth of (decent) accountancy for that. That includes my FYR all liability insurances etc.

**malvolio** · 25 June 2008, 08:42

Fine, after all you make your own decisions. You are still giving away 20% of your gross by acting as though you are inside IR35, but without the 5% discount and you're paying someone else for the privilege.

New to Contracting