OK, so I've got my first contract.....

[Hiram King Of Tyre]

I've just secured my first contract. What do I need to do? I'm looking into the Ltd Co v Umbrella debate. Do I need liability ensurance or anything? What tips have you got for a newbie that still has a nappy rash?

[hyperD]

First of all, send your contract in to the Inland Revenue for an IR35 review. Then drop your trousers and prepare for a larger ar$ehole...


Seriously, get someone like Accountax to review/negotiate your contract and/or get yourself a good accountant. Everything else is pretty much status quo. And find out the frequency you can invoice the agency and give them your a/c details asap.

[Hiram King Of Tyre]

Thanks. I have a friend who runs a successful accoutancy company. I don't know if that's a good idea or not.

What about liability? Do I need anti cock-up insurance?

[hyperD]

Never use friends as accountants. Use accountants that have an understanding of the IT/Ltd company business setup, especially with regards to IR35.

You can purchase Personal Indemnity insurance from Chaunce O'Hara, for example for around ~£400 or so. Sometimes the agency will insist on that, sometimes you may be covered by them/not necessary (rare).

It is very rare to be sued personally by the client for your cockups - you're more likely to get your contract terminated at short notice. If a permie trips over your bag and breaks a leg on the client site you may find 3rd party liability cover useful but again, these things are rare and the client liability may cover.

Your best focus is to sort out the IR35 situation with someone like Accountax/Lawspeed etc and find out the agency payment terms. Everything else is fairly insignificant. Apart from finding out the agency cut if you can - anything over 15% and you've been had like a kipper.

Good hunting...

[Hiram King Of Tyre]

Thanks.

My friend's company has quite a few employees, it's not a little back street office. It may be better to go "independant" though and go to a specialist.

The rate is as the top of my expected range though and £25 a day more than I asked for. Should I then worry what their cut is?

[hyperD]

Thanks.
The rate is as the top of my expected range though and £25 a day more than I asked for. Should I then worry what their cut is?

Nope. Unless you're making £25/day.

[Not So Wise]

The rate is as the top of my expected range though and £25 a day more than I asked for. Should I then worry what their cut is?

If you are happy with what you are getting why worry?

If you priced yourself to low for the market thats your problem, not theirs.