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View Full Version : Taking the plunge in a hurry



Nebari
23rd January 2012, 22:47
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.

My wife is due to give birth any day now (already overdue) so my plan was to take the next 4-5 weeks out and live on savings, whilst finding some time to determine what I need to do in regards to taking the plunge.

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. =)

northernladuk
24th January 2012, 08:31
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
24th January 2012, 09:39
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
24th January 2012, 09:41
The NLUKbot welcomes you.

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

malvolio
24th 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
24th 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 :happy

The Spartan
24th January 2012, 10:07
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
24th January 2012, 10:10
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 (http://www.hmrc.gov.uk/vat/forms-rates/rates/rates-thresholds.htm#2)

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
24th 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. :smile

northernladuk
24th January 2012, 12:07
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. :smile

Oh ye of little faith ;)

Wanderer
25th January 2012, 00:08
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. =)

Yeah, you are good to go. The only thing I would add is that you want to get a contract in place before you start work. If this is direct with the client then the PCG will do you a nice B2B one which is pretty bullet proof for IR35 (provided your working practices actually match the contract) so you don't need to get it reviewed.

Oh, and please be gentle with northernladuk - I think you just about gave him a heart attack by actually doing some research before posting here. :laugh

Nebari
26th January 2012, 17:47
Thanks for all the advice. I have just had the contract confirmed with the client and reviewed (IR35) successfully too - all ready to go now. :happy

I'm just about to purchase PCG+ membership, Prof Indemnity insurance and Public Liability insurance. Is there any need to get Employers Liability insurance too?

By the way, the baby has still not arrived - almost time to induce!!

NLUKbot
26th January 2012, 19:48
Is there any need to get Employers Liability insurance too?

The NLUKbot suggests you use the search facility.

NLUKbot Search Engine (http://bit.ly/zRx84J)

Zippy
26th January 2012, 23:14
Thanks for all the advice. I have just had the contract confirmed with the client and reviewed (IR35) successfully too - all ready to go now. :happy

I'm just about to purchase PCG+ membership, Prof Indemnity insurance and Public Liability insurance. Is there any need to get Employers Liability insurance too?

By the way, the baby has still not arrived - almost time to induce!!

Good show and best of luck with the sproglet.

NickFitz
28th January 2012, 02:06
Good show and best of luck with the sproglet.

WZS in respect of both matters :yay:

malvolio
30th January 2012, 15:49
Thanks for all the advice. I have just had the contract confirmed with the client and reviewed (IR35) successfully too - all ready to go now. :happy

I'm just about to purchase PCG+ membership, Prof Indemnity insurance and Public Liability insurance. Is there any need to get Employers Liability insurance too?

By the way, the baby has still not arrived - almost time to induce!!
If you have a sub clause strictly speaking you will need ELI anyway: it applies to subbies as well as employees (to be precise, anyone whose work you are contriolling). It costs about fourpence anyway, so just add it to the PI/PLI bill.

Nebari
5th February 2012, 20:47
I was thinking that in respect to subbies. I haven't got it yet, but I will look into it.

Many thanks for the good luck messages - in case you were wondering, we had a little girl called Heidi. :happy