What should i know before i go contracting?

NutJob

Iv just been offered a 9 month contract and am looking for any advice on contracting.

I have contacted a "Management company" but is there anything i need to know or you wish you knew before contracting?

Evil Phil

Watch your accounts and get an accountant if you're not going under an umbrella company. Is that what the 'Management Company' is?

ceejay

Manage your finances properly - keep company expenditure and personal expenditure separate for example. Don't spend the money you will need for paying your taxes later - put it into a savings account. Keep records of everything. Invest in yourself and your skills - you are responsible for your own development now. Above all, decide if this is going to be something you will do long-term, or just to fill in the next 9 months. Doing it properly has costs and requires investment of time and money, and may not be worth it for just a once-off 9 month contract.

Ciarán.

NutJob

Evil Phil wrote:

Watch your accounts and get an accountant if you're not going under an umbrella company. Is that what the 'Management Company' is?

Yep an umbrella company. Just reading anything i can get my hands on at the moment to figure out areas like education, expenses ...

Manage your finances properly - keep company expenditure and personal expenditure separate for example. Don't spend the money you will need for paying your taxes later - put it into a savings account. Keep records of everything. Invest in yourself and your skills - you are responsible for your own development now. Above all, decide if this is going to be something you will do long-term, or just to fill in the next 9 months. Doing it properly has costs and requires investment of time and money, and may not be worth it for just a once-off 9 month contract.

The reason im using an umbrella company is to make sure i cant spend my tax money Last thing i want is tax man looking for me.

The good news is this is not just a single 9 month contract or i wouldn't have considered it(that's unless something drastic happens).



Thanks Ciarán and Evil Phil much appreciated

cousin_borat

Pretty much the same as the other two guys. I would use the umbrella company for now to find your feet as a contractor. If all goes well and you decide to continue you have time now to figure out whether to set up your own company.

I'm currently in a similar position 2 months into my first contracting role in the Netherlands. Compared to the benefits of setting up a UK company in Ireland it is quite tough in terms of taxation. However I have to talk to an accountant next week and maybe will have a better idea then. Questions mainly around the most tax efficient of paying myself. IE employing a member of my family, paying dividends, etc.

Best of luck!

fiertie

Hi, I started contracting in May and was in the same boat as you. I decided to go with a company who are in between a limited company and an umbrella company - I have my own limited company but they deal with all the admin, etc for a (smallish) fee and there was no start up/shut down costs. PM me if you want the contact details. Never thought I'd be very suited to contracting but I'm loving it, especially the money though sometimes I do miss the security of a permanent job, sick pay, paid holidays, pension, etc. Good luck....

NutJob

Sry for the late reply but thanks again for your help have gone with an umbrella company and things are steaming ahead nicely.

Thanks for the advice its been much appreciated

sharingan

The best advice ever:

Get a good accountant

It doesn't matter how bad you are at finances, or how good you think you are, a good accountant will do better than that.

A good accountant:
costs you < €2000 /year
and
gains you > €2000 /year
Win Win all the way.

Downside:
They can be hard to find. There are lots of smart people who want to sort out their finances/taxation. The best accountants turn away business (they have more than they can deal with)