Made Redundant thinking of contracting ..... Newbie also

**northernladuk** · 12 September 2012, 22:46

Wrong. It isn't one of those things you learn as you go along. You will be running a business and be legally responsible for the finances of that company.
How can we make key suggestions when we don't know what you already know? Saying that one could be to do a lot more research before asking questions. We can't hand hold you through it. Did you read the stickies at the top of the thread, have read the newbies guide to the right and digested every other link that is there, have you used Google, have you tried searching the forums as described in one of the stickers etc etc. It will be your business so time to step up. No more hand holding and hiding behind the boss now......

Oh and welcome

**dugganator** · 12 September 2012, 23:11

Originally posted by northernladuk View Post

Wrong. It isn't one of those things you learn as you go along. You will be running a business and be legally responsible for the finances of that company.
How can we make key suggestions when we don't know what you already know? Saying that one could be to do a lot more research before asking questions. We can't hand hold you through it. Did you read the stickies at the top of the thread, have read the newbies guide to the right and digested every other link that is there, have you used Google, have you tried searching the forums as described in one of the stickers etc etc. It will be your business so time to step up. No more hand holding and hiding behind the boss now......

Oh and welcome

Ok think your reply is a bit harsh as running any business you will have to learn things as you go no one just knows everything at the start. Well I say that without being a contractor maybe you all do and im doing something wrong haha

I understand what your getting at btw.

But to answer your question yes I have read the stickies and the first timers guide hence why my main question was should I have my company setup now or when I get my first contract. The reason I said if anyone had any suggests was a simple one to be honest I dont think there is a harm in being told something twice just in case I have missed something or a important points some people fall over at the first.

Your not wrong I just dont want to make any simple mistakes but if this isnt the place to ask ill keep googling, my mistake and apologies if I missed the seaction for not being able to ask the above.

**cojak** · 13 September 2012, 00:00

Hi dugganator, welcome to CUK.

While it isn't a large amount, it will cost you a bit of money to create a company and can be a bit of a hassle to close if you find yourself with a newly minted Ltd and a permie job offer.

But if you do want to go the contractor route, I'd create a company before you find a contract. That way you won't have to rush everything through on the Friday before you start your 1st contract.

**MintyBloke** · 13 September 2012, 07:15

In case you are not already aware, some accountancy firms will set up your ltd company for you, so if you haven't already found an accountant it is worth taking into account (pardon the pun).

As you have just been made redundant, I would keep your outgoings to a minimum until you get offered something then sign up with one of the accountants often mentioned here to get your ltd setup. Once offered a contract get it reviewed with someone like qdos which will take a few days during which you can sort out the rest.

Just keep reading this forum and make sure you are ready and know what you need to do once that contract arrives. Good luck!

**malvolio** · 13 September 2012, 07:21

And since you clearly have a lot of learning to do and feel it's best done once you've started, then I suggest you go umbrella for the first gig. That way you won't have the chance to do irreversible damage and you will have the time to do your on-the-job learning ( a bad idea, but hey, it's your money).

But I agree with NLUK; know what you;re doing first. This is not a game or a short term alternative until something better comes along. Nor is it a guarantee to easy money. I'm pretty good at what I do and I've averaged (and budgeted on) 7 months a year paid work over the last ten years. The people that keep going month after month and have thrree contracts to pick from when they need them are not management.

**doomage** · 13 September 2012, 09:36

The first-timers guide is not big enough to have an answer for every individuals situation. I recommend:

1) Commit yourself to a course of action, and follow through until it is done.

2) Mitigate risk through preparation.

3) Succeed.

Alternatively, pussyfoot around, play it safe, and hope for the best.

Good luck and welcome to the forum.

**Harmonic** · 13 September 2012, 10:12

I was in a similar position as I was made redundant from my last permie job in February.

The first decision I made was that I wasn't going to look for another permie job and that I'd use my redundancy payment to cover however long it took to get my first contract. I then found a decent accountant who setup the limited company for me.

I did think about an umbrella but I think if you're unsure about sticking with contracting then it's a simpler option that starting a Ltd. Co. but it can make a fairly serious difference to your take home earnings.

I got a 6 month contract within a couple of weeks of leaving my permie job and have just got a 7 month extension although I've been given an unofficial heads-up that the project might get binned so I'm interviewing for other contracts.

As has already been said the best bet is to decide what you want to do and then jump in both feet and go for it.

**Support Monkey** · 13 September 2012, 11:12

Originally posted by Harmonic View Post

I was in a similar position as I was made redundant from my last permie job in February.

The first decision I made was that I wasn't going to look for another permie job and that I'd use my redundancy payment to cover however long it took to get my first contract. I then found a decent accountant who setup the limited company for me.

I did think about an umbrella but I think if you're unsure about sticking with contracting then it's a simpler option that starting a Ltd. Co. but it can make a fairly serious difference to your take home earnings.I got a 6 month contract within a couple of weeks of leaving my permie job and have just got a 7 month extension although I've been given an unofficial heads-up that the project might get binned so I'm interviewing for other contracts.

As has already been said the best bet is to decide what you want to do and then jump in both feet and go for it.

Go with the umbrella option for the first 12 month, see how you get on, its easier to walk away from than a Ltd company, yes your gonna take a hit on the money initially but in 12 months if you decide thsi is the life for you you can then sort out all the LTD company stuff, and when you get a contract you can concentrate on the work initially without also having to worry about if you filled your VAT form in correctly

**northernladuk** · 13 September 2012, 11:32

Originally posted by Support Monkey View Post

Go with the umbrella option for the first 12 month, see how you get on, its easier to walk away from than a Ltd company, yes your gonna take a hit on the money initially but in 12 months if you decide thsi is the life for you you can then sort out all the LTD company stuff, and when you get a contract you can concentrate on the work initially without also having to worry about if you filled your VAT form in correctly

Agreed. I think the previous poster calling it a serious hit is a bit of a wild statement though. It can vary wildly depending on your situation but better for the person in question to do the sums rather than just assume he will be seriously out of pocket. Cash effect aside he is going to think umbrella was a better option when the VAT man has him pants down over a barrel.

Made Redundant thinking of contracting ..... Newbie also