- This topic has 14 replies, 11 voices, and was last updated 7 years ago by allthepies.
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FAO contracters
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jimboboFree Member
I’ve asked a few people, but get mixed answers, STW knows best so here goes…
I’m probably going to be moving to a contract role soon (Management rather that IT). I’ve started a ltd company and business bank account as advised by the agency that found me the role. Now, I’m financially sensible enough to understand the basics, but also to understand my limits and as such intend to contact an accountancy firm. Most seem to offer packages (from £60-£120) but do i need to deal with an accountant monthly or would i just need the attention of an accountant at the begining of the contract, and year end and at the end of the contract? Nothing much is going to change in the months in between and paying out circa £100 a month seems to me to negate a large chunk of the benefit of being ltd?
I’m planning to take minimal pay and then take dividends, mainly as I am also looking at setting up a small scale, speciality consulting business, therefore “funding” the company with my wages as it were, rather than passing money back and forwards form my own and my business account.
Any advice?
Thanks
Jim
allthepiesFree MemberI’m one week into the contracting world 🙂
I have an accountant, costs circa £100 / month which is a company expense.
I would advise you do the same, certainly for the first year. You don’t want to be screwing anything up 🙂 Then in year #2 decide if you really need one or not.
To me, the expense for an accountant is pretty low and well worth it.
philxx1975Free MemberFirst how long is the contract, do you see yourself doing this for years or just for now?
domtasticFree MemberI use an accountant, they helped set up my company, become vat registered. They let me know when and how much vat, tax and ni i owe. They’ll also do my year end results. I also got a good explanation of how the budget will affect me with details regarding the dividend changes. On top of that they also help with pension and finincial advice. As already said it becomes a business expense and a good accountant will always save you more than they cost.
jimboboFree MemberOk, some good info here, so thanks! The contract is 12 months, potential for more and Its a direction I’d like to go in, in the future. Next question, local accountant or large national one? Local obviously has a more personalised service, but the most local has terrible reviews and if i had to travel I may as well work by phone internet anyway? Or is it easier to be accessible and actually work face to face (I prefer working this way, but dont want to pay a premium for something that will mostly be done by email and phone anyway?).
brFree MemberThe reason you need an accountant these days is not just for setup and year end, you’ve also to consider quarterly vat and monthly RTI.
Local or national is pretty irrelevant as you’ll be only emailing or calling them 🙂
allthepiesFree MemberI’ll never meet my accountant, he’s in Lancashire, I’m in Surrey. 90% of the comms are via Email.
Get one who deals with your situation i.e. one man limited company.
alfabusFree MemberI have an accountant I trust, which helps a lot.
A few mates have recently set up with https://www.crunch.co.uk and they recommend it. If I wasn’t already sorted, I’d be looking in to doing that.
Dave
nickjbFree MemberWhat will the accountant be doing? It sounds like you will be pretty much employed so there will be very little to do other than tax avoidance type stuff and maybe working around IR35. I reckon you’d be better off just playing it straight then doing your own tax return. Its not hard. Easy to cover other legitimate business expenses too without being Ltd and paid in dividends. I’d say you are way over complicating, just keep it simple (at least to start with).
TeetosugarsFree MemberI use a local accountant that came as a recommendation from a good friend, she’s spot on.
But if I wasn’t, I too would be going with Crunch, as they seem spot on.jimdubleyouFull MemberJust pick one of the the contractor shops, like SJD. Should pay for itself in the long run. Whilst £100 a month might seem like a lot, it’s about what the year end stuff will cost. They should also be giving you reminders about VAT / RTI when it’s due.
They will do your personal tax return too (you have to do one now you are a director).
deadkennyFree MemberSet up and personal tax return are easy sure. The rest is hassle and very easy to forget (and HMRC will fine you). VAT, RTI, P11D, P60, end of year accounts, ensuring the validity of expenses, keeping on top of constant changes to the law, advising best arrangements for things like salary/dividend/pension contributions/VAT, while juggling it all to give you the optimum return and minimum outlay. Worth an accountant in my opinion to save the hassle and ensuring you are legally bulletproof.
Though there are a number of all in one online invoicing & account packages where it does it all without an actual accountant, though you’re still paying a fee. A few of the big names now use some of these online services anyway to integrate invoicing and expenses, and avoid you having to do regular spreadsheets to the accountants (which mine still use).
Local or national, doesn’t really matter. Or you may even find the small traditional locals a bit expensive and stuffy, wanting to do things the old way and slow to respond. Big name nationals can be more competitive and on the ball, though things out of the ordinary may not fit into their templates.
geoffjFull MemberI’ve used Crunch for just over 5 years
Good bits – excellent online system for accounts, expenses, invoicing etc and good reminders about vat returns, payroll notification and all the statutory stuff you need to do, you get plenty of reminders about.Bad bit – limited tax advice
You can ask to speak to an accountant, but they tend to be more recent graduates than tax specialists.
If your needs are simple, there is plenty of tax advice out there and you may not need specifics from an accountant. If its a bit more involved then someone who you can have a face to face with may help.
I’m not sure I’d recommend crunch, but it works for me YMMV.
jimboboFree MemberThanks everyone, some really valuable advice. I’ll have a chat with a few and see what they offer. I appreciate you get what you pay for, however I’m lucky enough that both my parents and my best mate are accountants. unfortuntely mater and pater are both retired and didn’t work in small business environments, and best bud is impossible to get hol of this time of year!
allthepiesFree MemberI get a Freeagent account as part of my accountant’s fee. So I just add expenses/timesheets/invoices to Freeagent and my accountant pics it all up. There’s a Freeagent app too which makes adding expenses + receipt scans etc easy and quick to do. I can do all that while on the train each day.
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