First time contractor - Help

**Zippy** · 8 December 2009, 22:44

Sigh. Which one of you comedians is responsible for this?

**suityou01** · 8 December 2009, 23:17

Originally posted by Zippy View Post

Sigh. Which one of you comedians is responsible for this?

and to think after the grief the mods give me, THIS gets through.

**Moscow Mule** · 8 December 2009, 23:17

Originally posted by ContractorNew7 View Post

I would really appreciate, if any one can shred light.

If any of us could shred light we'd be clever enough to solve the energy crisis, the food crisis and we could all stop worrying about banks and jobs and we'd have more important things to do than post here....

**chef** · 8 December 2009, 23:32

I'll bite and be polite and to the point.

You need to be more specific. What is it about an accountant (im assuming you have called accountants to set up your ltd and not just a random number out the yellow pages) that you pay money for their services for that you don't believe over your friend who in the time of crisis i.e your in court defending the reasons why you as a director were not acting responsibly.. that your not sure of?

If your touting to find an incorporation service that is truthful and legit then as part of your research Im sure you come across accountancies such as SJD, Nixon Williams etc etc that come highly recommended on here who will set up your Ltd and advise you as well as they do to several on here (for a price and possibly not the cheapest on the market). Here's a hint, give one or both of them a call and see if they back up your friends or your previous enquiries views.

Either way, you have to decide, do you go with a paid professional who in theory you could sue for giving you wrong advice or your mate who tells you that you can take home more but doesnt specify how. Could it possibly be that everyone's circumstances/modus operandum are different and therefore it depends on how you run YOUR company as to what profits/dividends are available and ultimately how much you as a director and (im assuming) shareholder ultimately make.

I.e we're all different, everyone chooses to run their company as they choose and take on the risks involved in it. I personally would choose to research any leads of cost savings etc and judging that compared with my paid accountants/lawyers views can make a decision as director accordingly.

Otherwise, if you want a more in depth answer, please supply your companies and personal income/expenditure/profit/loss/personal spending habits/company expenses policy/family details/travel habits etc etc and Im sure the wise people on here will advise accordingly. If that level of detail is too uncomfortable then may I advise taking up the services of a reputable accountant as mentioned above (other accountants may provide a better and cheaper service) and ask them to create your limited for you and advise on how best to run your company as you wish.

OR, ask your mate what he recommends, do it and then your safe in the knowledge that you 100% trust your mate that he's telling the truth and as long as he isn't investigated first then all is cushdee, not a risk I personally believe worth taking.

Hope this of help in pointing out how vague your original question is and how little we can do to advise in an authoritative manner without knowing the facts. In short, get an accountant that you trust or comes recommended on here and ask them to setup your limited if your not confident yourself or atleast ask their money management advice.

Chef

**HairyArsedBloke** · 8 December 2009, 23:36

Before we can help you we need to know a bit more about you.

For a start ..........

**suityou01** · 8 December 2009, 23:37

Originally posted by chef View Post

I'll bite and be polite and to the point.

....

chef feeds the sockie

....

Please stop. Have a bacon sarnie?

**chef** · 8 December 2009, 23:40

Originally posted by suityou01 View Post

Please stop. Have a bacon sarnie?

Nahh Im tired thanx, only logged on as I was sending troops out in Travian. I'm off to bed as I have a conf call in 6hrs 40 and I shouldn't have watched so much TV.

night.

**pzz76077** · 8 December 2009, 23:45

Originally posted by ContractorNew7 View Post

Hi

I am contracting for the first time in the month of Jan 2010.
My day rate is 600 and the location is outside London.

After a lot a research, I understand that the best choice would be a Limited company.
In my attempt to create a Limited company - I made many calls to different companies that offer this service and also maintaining account of the company.

Two of the companies quoted that I would take home nearly 10K home(excluduing expenses) which is nearlly 70%.

When I informmed to my friend who is also contracting disagreed a lot.
He said there is no way that we can get so much!

I would really appreciate, if any one can shred light.
What do u think the take home would be, if taking into concentration the usual expenses and pay to director.

Please help me with any advice on accountants.

Thanks

First go here: http://www.contractoruk.com/online_c...ion_agent.html

Then go and see an accountant followed by a lawyer.
If they cant answer all of your questions and put you on the right track, forget a Ltd Co and find an umbrella co this side of Xmas.

PZZ

**Gonzo** · 8 December 2009, 23:52

Originally posted by ContractorNew7 View Post

What do u think the take home would be, if taking into concentration the usual expenses and pay to director.

You have to keep in mind that while you earn very good money while on a contract, there can be lengthy periods between contracts and with the current state of the economy there are many contractors who have not worked for months or even at all, all year.

So to be on the safe side I would take no more than £1,000 per month and keep the rest in the company as funds to get you through any period on the bench.

Originally posted by ContractorNew7 View Post

Please help me with any advice on accountants.

Yes. Accountants are people that add up all your company's income and expenditure and tell you how much tax has to be paid.

Some also provide extra services such as filling in all forms required by Companies House.

hth

EDIT: I should add that I think the rate you are getting is a bit low in this market.

It is all about supply and demand. There are so many contractors out of work at the moment that that means the contracting money is spread between fewer people so the rates are higher.

Your agent is probably taking the mickey. If I were you I would phone them tomorrow and demand £750 per day. They won't give in easily so you need to be prepared to play hard-ball, telling them the deal is off unless you get it.

First time contractor - Help