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Tribesman
13th September 2010, 21:29
Hi Everyone

I'm a first time contractor and need some advice.

I've just secured a very attractive long term contract with an established company and I've been told to setup a limited company for payment.

The problem is that I'm one of the people you've been reading about who've been cracked by the credit crunch (I only have myself to blame :emb). I have the following issues:

1. I am on a debt management plan.
2. I have one CCJ (£2300).
3. As a result of the CCJ, the organisation involved is trying to place a charge order on my property (I am defending the action).

I have an accountant appointed, and now I have to setup the company. My fear is that I won't be able to open a bank account for the new company which, of course, is ironic because I'll be able to clear all my debts in 2-3 months if I do.

I've seen online that you buy a company with a bank account included for about £300 but I'm not sure if these schemes are 'too good to be true'.

Can anyone advise on how I can move forward with this situation? Maybe I'm being too fearful?

Wanderer
14th September 2010, 07:23
My fear is that I won't be able to open a bank account for the new company which, of course, is ironic because I'll be able to clear all my debts in 2-3 months if I do.

Technically, your company is a separate entity to you but they may do a credit check on you as director. Probably the main consolation is that your company won't be borrowing any money (indeed, it will retain a substantial amount for Corporation Tax/PAYE/NI etc).

Give it a shot, you won't know till you try! I'd recommend that you get a package which includes accountancy and company setup so they can keep you on the straight and narrow.

Tribesman
16th September 2010, 07:45
Give it a shot, you won't know till you try! I'd recommend that you get a package which includes accountancy and company setup so they can keep you on the straight and narrow.

Thanks for the advice. I'll give that a try. Much appreciated.

Jog On
16th September 2010, 10:11
Try Cater Allen - or go umbrella

cojak
16th September 2010, 10:28
I think umbrella is the way to go until you get yourself sorted out.

Wanderer
16th September 2010, 20:10
I think umbrella is the way to go until you get yourself sorted out.

Cojak has a very good point, especially if (no disrespect intended, Tribesman) you have had a little difficulty managing your money in the past. Running a LTD is a fair bit of hassle and there is a lot of retained cash where there may be a temptation to spend some of the companies money and getting you in to a pile of trouble....

Tribesman
16th September 2010, 23:28
I think umbrella is the way to go until you get yourself sorted out.
I was considering this option but the person in charge of the contract said they don't like dealing with umbrella companies, so I've had to look into the Ltd Co. option now. I know it shouldn't make a difference to the client who they pay, but that's what they said.

I'll give Cater Allen a try. They're part of Santander, and I get my salary paid into my Santander account so it's a sort of reference already.

On the finance front, I wasn't too silly with my money, but like a lot of 'silly' people I took out a large mortgage with Northern Rock.... (and the rest 'they say' is history....)

Scrag Meister
17th September 2010, 07:28
I think umbrella is the way to go until you get yourself sorted out.

WCS

Yeah Northern Rock!!! Don't get me started, "Together" mortgage what a nightmare of a concept, but it was a means to an end at a difficult time.