Taking the plunge in a hurry

**northernladuk** · 24 January 2012, 08:31

Originally posted by Nebari View Post

Hi all

I've been browsing the forums for a couple of days, reading the first timers guides, intro with an accountant, questioning various contractors I know etc., all in the assumption that I would start up a ltd company in the next month or so with a view to contracting.

I am gonna be made redundant if you new guys come on reading the guides!

All of a sudden, my old company have asked if I could contract for them 1 day a week, whilst I am taking time out. The role would not be what I was doing before. Anyway I now have an urgent need to sort things out very quickly (they want me to start this Friday), so have been reading as much tonight as possible, however as I don't know how much time I have in regards to my wife going into labor, I need to clarify a few things in a rush, so could anybody confirm if the following is a fair list of what I should do in the next day(s):

1. Create a company - accountant said they would handle this, as well as initiating company bank account
2. Join PCG
3. Get Professional Indemnity insurance - going to use QDOS
4. Get contract reviewed - going to use Bauer & Cottrell contract guardian

I know this probably isn't exhaustive, however are these the key things I need to urgently do / are the major start up costs? I just don't want to miss anything obvious. =)

Well if you are short of time you can forget 2 and 3. They are long run stuff and can wait a couple of weeks. Saying that though if you get QDOS PI/PL they do free reviews so you will not need to do number 4 so kill two birds with one stone.

You need get VAT registered and on the FRS at some point.

I don't think there is a rush here. You just don't invoice your 1 day a week client until you are ready. The contract can be drawn up in whatever name you are going to call your company and then just hold off invoicing for a month or two until it is all set up? Could even just invoice as a sole trader but someone else would have to tell you about that.

Don't worry too much about the company, there are ways and means around this and in the very worst case there are no better excuses than your wife giving birth in the middle of the form.

Your priority is..

1) Make sure your wife and baby to be are ok
2) Do company stuff later. It can wait.

**TheFaQQer** · 24 January 2012, 09:39

Originally posted by northernladuk View Post

You need get VAT registered and on the FRS at some point.

No, you don't.

If your VATable turnover breaches the threshold, then you need to register. If you have considered the benefits / downsides of being in FRS, then you should consider whether you should do this.

There is no NEED to do either.

**NLUKbot** · 24 January 2012, 09:41

The NLUKbot welcomes you.

Are you sure you are cut out for contracting? Have you tried searching?

**malvolio** · 24 January 2012, 09:56

IF you're joining PCG anyway, take a look at their Startup option - main website /Join PCG /Which membership. Gets you the whole thing in one tin.

**Nebari** · 24 January 2012, 09:58

Many thanks for the replies. =)

The accountant is sorting out FRS for me as well. I'll be talking to him in the next hour or so.

With regards to QDOS, as far as I can see they have 2 options for reviews:

1. £85 per contract review - I'm not sure if this a pass only cost or not (i.e. if it fails and I get the contract altered, do I need to pay £85 again for another review)?
2. A bundle of 3 reviews in a year

The reason I am leaning towards B&C is that it is unlimited over a year and they will also negotiate the contract changes with the client / agency for me.

NorthernLadUK - Is it definitely the case if I take PI & PL insurance with QDOS that I get free reviews (I can't see any mention of that when selecting their products - I may be missing something blatantly obvious). Also if so, do you know if there is a limit to the number of reviews?

And of course, my priority is my wife and little one to be

**The Spartan** · 24 January 2012, 10:07

Originally posted by TheFaQQer View Post

No, you don't.

If your VATable turnover breaches the threshold, then you need to register. If you have considered the benefits / downsides of being in FRS, then you should consider whether you should do this.

There is no NEED to do either.

How much is the threshold?

**Jeremiah@RHJAccountants** · 24 January 2012, 10:10

Originally posted by The Spartan View Post

How much is the threshold?

The VAT threshold is £73,000 take a look at the link from HMRC

HM Revenue & Customs: VAT rates, thresholds, fuel scale charges, exchange rates

You can still register for VAT if you dont meet the threshold it all depends on if it is going to be good for the company.

**Nebari** · 24 January 2012, 11:10

I've just spoken to someone at QDOS and they confirmed that you do get 3 free reviews per year you purchase PI / PL insurance with them.

I also confirmed that, if a contract fails their review and needs amendments and a re-review then this would still be classed as part of the original review, therefore only using up one of the free reviews.

**northernladuk** · 24 January 2012, 12:07

Originally posted by Nebari View Post

I've just spoken to someone at QDOS and they confirmed that you do get 3 free reviews per year you purchase PI / PL insurance with them.

I also confirmed that, if a contract fails their review and needs amendments and a re-review then this would still be classed as part of the original review, therefore only using up one of the free reviews.

Oh ye of little faith

Taking the plunge in a hurry