|
|
|
|
|
|
BMW Garage | BMW Meets | Register | Today's Posts | Search |
|
BMW 3-Series (E90 E92) Forum
>
Contracting - New To This!!
|
|
06-19-2015, 08:01 AM | #1 |
Lieutenant Colonel
100
Rep 1,672
Posts |
Contracting - New To This!!
OK...
So I'm taking VR next month, and have decided to go down the contracting route as I'm a financial modeller by trade and there are a fair few jobs out there. The big concern to me is I've never done this before, so would you guys have any companies you could recommend who would be able to set everything up for me as a limited company and provide all the finance stuff that i will need, as well as advising me what i can/can't claim for! Cheers!!
__________________
Been there, done that, driven the 'Ring
|
06-19-2015, 08:22 AM | #2 |
Colonel
146
Rep 2,337
Posts |
If you can get around IR35, then you are laughing ;-)
There are lots of ways to do it, but if you want to take the most money home often a ltd is the best way, especially if you know what to do with money. If you want less hassle, go through an umbrella/agency. There are plenty of places to get advice on the net. Do plenty of research and then get some professional advice. It's different for everyone. |
Appreciate
0
|
06-19-2015, 09:11 AM | #3 |
Private
1
Rep 94
Posts |
Have a look at:
http://www.ipse.co.uk/ Good information to get set-up and great reference material you can utilise.
__________________
E90 LCI 335D MSport|Space Grey|Sunroof|Visibility|F&R Sensors|Leccy Fold Ext Dim Int & Ext Mirrors|Media Pack Pro|Voice & USB|DAB & DVB|HK L7|Black Leather|Leccy Seats|Lumbar & Heat|Type 313 19" Performance Pack Wheels|Trackstar|Protect & Care|Service Inclusive
|
Appreciate
0
|
06-19-2015, 10:21 AM | #4 |
Colonel
244
Rep 2,811
Posts
Drives: Jaguar XE P250 HSE
Join Date: Jan 2008
Location: Glasgow
|
I wouldn't suggest the Umbrella group route as you get hit with paying employer's national insurance at 14% on ALL your income. I was able, recently, to compare PAYE converting to Umbrella at the same rate and I made an extra £70 per month tops and that was mainly through claiming tax relief including some of the things HMRC aren't too sure about.
I recently formed a limited company in a new job. I am compliant with IR35 and the company who helps you, arranges the formation of your limited company (cost is £43), and attends to all your tax and VAT matters in their monthly fee which is around £150 - tax deductible of course. If you don't spend money on anything that requires a refund of VAT (i.e. all you do is buy fuel) you can elect to join the flat rate VAT scheme. You charge 20% VAT to the customer and you pay a lower rate to the VAT (e.g. 14.5% instead of 20%) which puts more money in your pocket (taxable of course). They arrange a business bank account for you (you are a company, you have to receive income in a business account). Cost of the business account is typically £50 to £80 per annum (mine is £49 and because of agreements with the company - Brookson Ltd (brookson.com) your first year charge is refunded). You will also need company insurances and they have a company for that as well. Premiums are very reasonable since your company would be a sole trader providing personal services - not usually high risk.) Brookson, (or equivalent company) will look after your VAT payments, do your invoicing, and tell you your tax liability as the weeks and months go by ('cos you don't pay the tax man until the January after the end of your financial year. At the end of the year (and included in the monthly fee), they will do your annual tax return. It was quick, easy, and cheap, and I was a newbie at it. For me, net retention of gross pay was 67% under PAYE, 70% under Umbrella and 82% under limited company. |
Appreciate
0
|
06-19-2015, 11:17 AM | #5 |
Private
14
Rep 89
Posts |
If you are able to do contracting work and stay self employed then you better off starting that way and once your earnings take you over the basic into the higher rate of tax, then look at the limited company option at that point as your be hit with corporation tax.
Your best option is to speak to an accountant or advisor, they generally don't charge for an initial consultation if there is a chance they can obtain work from you, ie do your annual tax return or accounts. Last edited by Bbbeemer; 06-19-2015 at 04:40 PM.. |
Appreciate
0
|
06-19-2015, 03:46 PM | #6 |
Lieutenant Colonel
100
Rep 1,672
Posts |
Thanks a lot for the info guys - esp for the essay Alan - very much appreciated.
82% take home would be brilliant!
__________________
Been there, done that, driven the 'Ring
|
Appreciate
0
|
06-22-2015, 06:06 AM | #7 | |
Colonel
146
Rep 2,337
Posts |
Quote:
|
|
Appreciate
0
|
06-22-2015, 01:55 PM | #8 |
Lieutenant Colonel
100
Rep 1,672
Posts |
Ive come cross SJD accountancy and they look pretty all inclusive and am tempted to go with them as I've just secured my first contract today
Exciting times ahead - tho I'm just chuffed i can buy a new laptop!
__________________
Been there, done that, driven the 'Ring
|
Appreciate
0
|
06-23-2015, 03:00 AM | #9 |
Major
227
Rep 1,489
Posts |
Alans advice is spot on.
82% is the current norm, anyone offering you more is clearly not doing something quite right and likely to cause you a problem with HMRC. Its a massive market and there are 1000's of companies out there who can do the same thing. I would suggest that you find someone that will come out to you and meet you, and who have an mobile app for processing your hours etc. Just makes life easier. I use Eccleston square consulting. SJD look identical, Brookson do the same. |
Appreciate
0
|
06-25-2015, 03:25 PM | #11 |
Lieutenant Colonel
100
Rep 1,672
Posts |
Cost of lappy being offset .... and so is new phone that i urgently need for work
(ok so my dad is getting an iPhone... but hey )
__________________
Been there, done that, driven the 'Ring
|
Appreciate
0
|
Bookmarks |
|
|