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Contracting Advice

Discussion in 'Randomination' started by markysimmo, 9 Dec 2021.

  1. markysimmo

    markysimmo Johnny nice-tits

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    I’m currently in a contract Inside of IR35
    It’s looking increasingly like my next contract will be outside of IR35

    I know I will have to set up my own company and pay myself as it is
    I know I will pay myself a small salary each month and then dividends from my business account
    I will be able to claim for a lot of work expenses too

    Anybody here got experience of this and have any tips/advice for what to do/what not to do

    I’ve heard its a simple process to set one up, I’m sure my accountant will help me too
     
  2. johnola

    johnola Teemu Tainio

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    You are running a company Mark. You will have to be organised but it’s not necessarily onerous. Lots of interaction with hmrc for vat submissions and submitting accounts and being careful with your cash flow, tax liabilities and separation of company money and your own (They are not the same).

    You’ll also register a payroll with HMRC and will have it submit a self assessment if you are not already.

    Also remember to keep extra back for year 2 etc as you will end up paying an advance on the tax due within the tax year.

    It’s also easy to wind it up and if you have less than £20k you can take the capital out as a capital gain rather than income…

    I had a good accountant.
     
  3. markysimmo

    markysimmo Johnny nice-tits

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    Thanks I have a good accountant too so by the sounds of it will be leaning on them a fair bit
     
  4. Bedfordspurs

    Bedfordspurs Micky Hazard

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    Look at Brookson Flex
    You can work both inside and outside on their same model
     
    markysimmo likes this.
  5. markysimmo

    markysimmo Johnny nice-tits

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    The Knowledge centre is fantastic
    Once I get a contract I’ll give them a call
    Looks like they do pretty much everything for you which is what I want really
     
  6. markysimmo

    markysimmo Johnny nice-tits

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    @Bedfordspurs Do you know how much they charge ??
     
  7. Bedfordspurs

    Bedfordspurs Micky Hazard

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    Not too sure
    I pay about £35 a week I think
     
  8. markysimmo

    markysimmo Johnny nice-tits

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    Ok, I pay Giant £120 a month to do my payroll so pretty similar
     
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  9. Bedfordspurs

    Bedfordspurs Micky Hazard

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    they are all very similar in price
     
  10. markysimmo

    markysimmo Johnny nice-tits

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    @Bedfordspurs another question how did you used to pay yourself from the company account
    Do I just pay myself the salary net from my business account to my personal account ?
     
  11. Bedfordspurs

    Bedfordspurs Micky Hazard

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    Inside or outside
    Outside I actual took a basic pay of something like £1000 a month taxed as paye
    Then took dividends periodically
    Paid vat quarterly and tax annually in arrears
     
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  12. markysimmo

    markysimmo Johnny nice-tits

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    Outside, my Umbrella sorts out my PAYE on my Inside
    I did see about paying yourself the a small salary under the tax allowance threshold
    When you say periodically would you do one every 3 months or so or could you do it regularly ??
     
  13. Bedfordspurs

    Bedfordspurs Micky Hazard

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    I did it regularly as in monthly
    But it seems it’s frowned upon
     
  14. ShipOfTheseus

    ShipOfTheseus Roman Pavlyuchenko

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    All much easier done annually if you have the savings cushion, I find. A monthly payroll system for directors is a PITA.
     
  15. ricky2tricky4city

    ricky2tricky4city Rafael Van Der Vaart

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    You can pay yourself a regular dividend as long as your Company profits (less corp tax commitments) can cover it. You must leave enough money in the account for operating capital for future outgoings.

    If things are pretty simple it is not hard to judge this (ie how much profit you are running at after tax and costs) especially if you don't have irregular or massive costs. Just leave a buffer, and at year end it'll all be tied up by the accountant. You'll then be owed the balance of dividends not paid/claimed.
     
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  16. markysimmo

    markysimmo Johnny nice-tits

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    Yeh if I get the contract I want I know how much it pays and roughly how much I can pay myself each month/2 months leaving the rest for tax and any other costs etc
     
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  17. markysimmo

    markysimmo Johnny nice-tits

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    Had an intro call with Brookson, very impressed with what they offer and it's a monthly decent price
    @Bedfordspurs really glad you recommended them, thanks mate
     
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  18. Bedfordspurs

    Bedfordspurs Micky Hazard

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    I can send you you a spreadsheet with that on…
    If I can find it
     
  19. markysimmo

    markysimmo Johnny nice-tits

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    The guy mentioned they will tell you to the penny how much of your wages you can withdraw each month
    I liked the sound of a lot of what they do
    Expenses are nice and easy too
     
  20. Bedfordspurs

    Bedfordspurs Micky Hazard

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    Cool
     

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