Getting organised - new contractor

[n103]

Hello, am new here and just getting started with contracting. Have a few questions, would appreciate any thoughts:

1. How do you organise all the paperwork? Can anyone recommend a way to file letters, HMRC forms, expenses, receipts, etc that works for them? Also, what method of organising files on your computer works well?

2. How well do you separate your personal communication from your work-related communication e.g. separate email address, separate mobile number, etc?

3. Other than your main contract, do any of you have any side business activities that maybe you do over the weekend or spare time? Would love to know how many do this, or would like to do this? Also, specifically I'm curious if your accountant handles the other businesses (I'm with one of the big contractor accountants, and I dont think they do handle anything other than your main contract).

Many thanks in advance.

[northernladuk]

This is ridiculous. This section needs to be locked. It is just spammed with sockies and trolls attempting to be funny.

Can anyone recommend a way to file letters,

Someone shoot me please....

[administrator]

This is ridiculous. This section needs to be locked. It is just spammed with sockies and trolls attempting to be funny.



Someone shoot me please....

Hello, am new here and just getting started with contracting. Have a few questions, would appreciate any thoughts:

1. How do you organise all the paperwork? Can anyone recommend a way to file letters, HMRC forms, expenses, receipts, etc that works for them? Also, what method of organising files on your computer works well?

Two ASDA bags. One with "Home" written on it, one with "Business" written on it. Sorted.

Actually 2 drawers in a filing cabinet...

2. How well do you separate your personal communication from your work-related communication e.g. separate email address, separate mobile number, etc?

One mobile number, 2 is a pain in the arse although I know some take out a PAYG mobile for use on CVs and only turn it on when looking for work.

I do have business and personal emails.

3. Other than your main contract, do any of you have any side business activities that maybe you do over the weekend or spare time? Would love to know how many do this, or would like to do this? Also, specifically I'm curious if your accountant handles the other businesses (I'm with one of the big contractor accountants, and I dont think they do handle anything other than your main contract).

Many thanks in advance.

My accountant is sent all invoices raised by my business plus all expenses quarterly. From this he does my VAT return and then EOY accounts too. Don't see why this would be any different for any of the contractor specific accountants. Especially if you are routing weekend work through your one Ltd then why on earth would it go to another accountant? They would not be able to create EOY accounts with only half the details...

[Sysman]

Two ASDA bags. One with "Home" written on it, one with "Business" written on it. Sorted.

You may jest, but many accountants have to deal with plastic bags of receipts from self employed folks all the time. A pair of accountancy lasses can get through them in pretty swift order.

Actually 2 drawers in a filing cabinet...

I used to use Sage but then migrated to QuickBooks, and did the basic book keeping and VAT myself. Since my early IT career involved accounting systems and payroll this was a piece of cake. I filed the printouts according to printout type, i.e. all the trial balances for a year were together, all the day books were together and so on.

To control receipts I created an expenses form, adapted from one of the better ones I had used as a permie. Fill in the details, staple receipts to the back, and enter them as a batch to my accounts program. By keeping these bang up to date it was surprising how many incidentals such as phone box calls (in the days before mobiles) I caught. I would have forgotten these if I had left it all to the end of a quarter.

[n103]

Thanks for the tips, sysman and admin.

[Punter]

To control receipts I created an expenses form, adapted from one of the better ones I had used as a permie. Fill in the details, staple receipts to the back, and enter them as a batch to my accounts program. By keeping these bang up to date it was surprising how many incidentals such as phone box calls (in the days before mobiles) I caught. I would have forgotten these if I had left it all to the end of a quarter.

Ditto.

I keep all receipts and do a monthly expense claim form to the company. It includes all allowable costs, like travel, hotels, subsistence, car mileage, phones, subsistence, incidentals (£5 a night in UK, £10 overseas), fees, insurances, accounting fees, subscriptions, stationery, home office costs, Christmas turkey.

One expense a month, one invoice a month, one VAT payment PAYE/NIC a quarter. One page in Excel.

[TheFaQQer]

Ditto.

I keep all receipts and do a monthly expense claim form to the company. It includes all allowable costs, like travel, hotels, subsistence, car mileage, phones, subsistence, incidentals (£5 a night in UK, £10 overseas), fees, insurances, accounting fees, subscriptions, stationery, home office costs, Christmas turkey.

One expense a month, one invoice a month, one VAT payment PAYE/NIC a quarter. One page in Excel.

That's what I do too - just have a printed page from Excel that I enter my expenses on and staple the receipts to it. When I get round to it, enter them into my accounting spreadsheet, put the papers in a poly pocket and file away with that year's accounts. End of year, email spreadsheet to accountant and give him the paperwork at some stage.

Having a well documented expenses approval system also means that you can apply for a dispensation to save paperwork when it comes to P11D, as well.

[Clippy]

That's what I do too - just have a printed page from Excel that I enter my expenses on and staple the receipts to it. When I get round to it, enter them into my accounting spreadsheet, put the papers in a poly pocket and file away with that year's accounts. End of year, email spreadsheet to accountant and give him the paperwork at some stage.

Having a well documented expenses approval system also means that you can apply for a dispensation to save paperwork when it comes to P11D, as well.

Similar approach to mine but, when I incur an expense, I file it in a poly pocket and update my spreadsheet straightaway and always reclaim my expenses at the end of the month.

Might sound anal but expenses can easily spiral out of control if you have a lot of them leaving you scratching your head when trying to compile them after several months and, potentially, out of pocket.

Learnt to do this from my first permie job after uni which involved a large amount of travel and hence, expenses.

[Wanderer]

1. How do you organise all the paperwork? Can anyone recommend a way to file letters, HMRC forms, expenses, receipts, etc that works for them? Also, what method of organising files on your computer works well?

Anything that's got an electronic copy is filed on my computer. Invoices and really important stuff are scanned and filed on the computer. Everything else gets thrown in a big box.

2. How well do you separate your personal communication from your work-related communication e.g. separate email address, separate mobile number, etc?

Sort of. My company stuff (accountant etc) uses my personal email address. Work stuff goes to the work email address. It's trivial to setup a new email address in your company name and probably not such a bad idea either.

For phones: Some providers will give you a secondary number on your phone that you can use for business calls. Just remember to have it handy if anyone asks what your number is!

When I'm looking for work I get a PAYG sim and a new email address then apply for loads and loads of jobs. Once I'm in a stable job, I throw away the SIM and the email address - I hate having agents ringing or spamming me all the time when I don't want to talk to them.

3. Other than your main contract, do any of you have any side business activities that maybe you do over the weekend or spare time? Would love to know how many do this, or would like to do this? Also, specifically I'm curious if your accountant handles the other businesses (I'm with one of the big contractor accountants, and I dont think they do handle anything other than your main contract).

You can do what you like with your company. The only limitation is that you may have to drop out of the FRS VAT scheme if you aren't in a single line of business. If the accountant can't handle then sack them and get one who can.

[n103]

Thanks once again, very useful.