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Becoming a contractor
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09-25-2013, 02:42 PM | #1 |
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Becoming a contractor
I've had an option for a new role but it would require me to setup a LTd company and become self employed.
Anyone on here with good tax know how just to answer few questions especially as worried about ir35
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09-25-2013, 06:31 PM | #2 |
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Easiest way is to find an umbrella company with a straightforward weekly fee for running the system.
Have a word with Brookson, they specialise in keeping you safe from IR35 |
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09-25-2013, 11:04 PM | #3 |
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I wouldn't use an umbrella company, i'd stick to your plan of setting up your own LTD. Umbrella companies are good for new contractors but you can easily do all the work yourself and get more money.
What are your questions? |
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09-26-2013, 04:26 AM | #6 |
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As stated above go for a Ltd company. That way you are in control of your own destiny and you can claim to be a powerfully built company director as an added bonus
Just get yourself a decent accountant. It might seem a bit daunting initially but setting up and running a Ltd company is a piece of p*ss. As for IR35 just make sure when your contract is worded in the correct way, most companies\recruiting companies will do this anyway and your accountant should be able to check it and tell you if it's IR35 compliant. |
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09-26-2013, 04:38 AM | #7 | |
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First thing to get straight is that running a LTD company is NOT being self empoyed. You may choose to call yourself a Freelancer, but never self employed. Self employment is what window cleaners do and is nothing to do with running a company. You are an employee of a firm. end of. No 1 rule get a good accountant that specialises in small LTD firms, they will help you set it all up right from day 1. No 2 rule join the PCG (www.pcg.org.uk) for all the help and advice you'll ever need No 3 rule is to remember there is no such thing as an IR35 proof contract. I've been investigated for it and the HMRC are allowed to disregard the contract terms where they can see the actual working arrangements are inside IR35. So you have to really operate outside IR35 not rely on a useless bit of paper that they can just ignore. Think and work like a real business, not just a tax dodger. Take pro advice. Last edited by doughboy; 09-26-2013 at 05:09 AM.. |
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09-26-2013, 02:59 PM | #8 |
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When you pick an accountant pick one who is scrupulously honest and doesn't claim to know a few income-boosters. The HMRC know exactly who is super-straight and who is a bit fly. They distribute their attention accordingly.
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09-26-2013, 03:01 PM | #9 | |
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My old man always said you need two accountants. One honest one to do all your books One dishonest one to tell you a few tricks. |
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09-27-2013, 03:38 AM | #10 |
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Yep good advice, I always wonder why people risk their lively-hood buy trying dodgy scams which could get you in bother for the sake of a few hundred quid extra a month. You should already be earning much more as a contractor than you were as a permie anyway so why bother?
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09-28-2013, 01:11 AM | #11 |
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Join PCG, without a doubt!
PCG is a not-for-profit owned by it's 21,000 members who are all contractors and 98% of them have their own limited company. I may be biased but they are the source of all the help you could possibly need and as well as giving you solid advice and even providing a company and accredited accountant (if you want them to) they have experts on hand to defend you if HMRC come calling. Their knowledge about contracting is second to none - and membership only costs about the same as a cappuccino a week! Click through from this clip to see the delectable Rachel Riley explain some of what PCG can do for you. Last edited by cjbryce; 09-28-2013 at 01:17 AM.. |
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09-30-2013, 06:10 AM | #12 |
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cjbryce +1 as I said in post 7
I joined them in 2003 while I was still setting up my LTD co (still in my previous life as corporate slave) Absolutely essential. And when I got a PAYE enquiry in 2005 (disguised IR35 noseying by HMRC) as soon as they knew I was a PCG member the HMRC people left the accountants office without even waiting for their coffee. PCG gives free insurance cover for HMRC challenges against you, so HMRC know any accusations against a PCG member has to be 100% rock solid or they'll be blown out of the water by PCG funded tax barristers... £140 a year well spent. |
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09-30-2013, 01:48 PM | #13 |
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Thanks everybody really appreciate all the info. We are going to register the company name this week and kick things off. Meeting with my accountant as soon as he is back from holidays next monday to get tax all planned.
And will definitely do the PCG thank you
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