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About To Take The Plunge

Discussion in 'General Forum' started by Scoof100, Nov 18, 2006.

  1. Scoof100

    Scoof100 New Member

    Dear Members,

    Am about to accept my first freelance position and need to set myself up as limited. Biggest scare appears to be IR35 and I am told that I need to be careful with contract:

    1. What is the surefire way of being outside IR35 for someone like me who is a providing a professional intellectual service to a large client organisation?? Are there specific bullet points that I need?

    2. Should I avoid the words '....Services Limited' in the title of the company stationary and only use '.....Limited'?

    3. Is there like an expert on the end of the phone or even a face to face service that is recommended or available for new starters like me?

    4. Do you recommend VAT flat rate scheme in the main, or normal way? I realise that it may depend on the volume of purchases for the business; but this I do not expect will be excessive eg. Mobile phone, laptop, stationary, pda etc.

    5. Do you recommend a local accountant that you can see, or do you recommend one of these faceless internet accountancy firms that promise everything for £75+VAT or thereabouts per month?

    6. What about PCG? Do most of you guys join?

    7. What about bank account; do you go with a free set up as shown variously on-line, or do you walk into a high street branch. Any drawbacks here??

    Loads of questions I know, but there seems to be a lot that I need to learn!

    Last edited: Nov 18, 2006
  2. simonsjdaccountancy

    simonsjdaccountancy New Member


    Complex subject, but main points to look for:

    1. You should be able to send a substitute in to do the role in the event you are unable to do so. Unlikely that the client will go for this, so ask for teh clause to be put in but give the client the right to refuse the substitute if in their reasonable opinion they are unsuitable;

    2. Make sure they have no control over how, when or where to do the project (subject of course to project deadlines)

    3. Make sure that in the event they are unsatisfied with you they can dismiss you without notice.

    4. There should be some element of financial risk on your part eg not being paid if the work is not up to scratch, the need to correct any defective work in your own time and at your own expense.

    The last two points are of course to your detriment, but that's the nature of it.

    Makes no difference either way.

    Most accountants will give you some help and advice over the phone and many will offer an initial meeting FOC (us included of course! Accountants UK - SJD Accountancy - Chartered Accountants)

    You would need to do a quick calculation, but if your VAT on purchases will be limited as you suggest you will almost certainly be better off going flat rate VAT.

    You need to find an accountant that you can talk to, that explains things in a way in which you can understand and that has specialist skills in the area of freelancers. Face to face meetings are useful sometimes, and if you feel you would like one just make sure that the firm you choose can offer them somewhere local to you.

    We have a fair number of clients that join. A great many of these find the discounted insurance to be the main benefit.

    The bank you have your personal account with would be about the easiest and they will probably match whatever deal you would be offered elsewhere for the first 12 months at least.

    Loads of questions I know, but there seems to be a lot that I need to learn!

    Last edited by a moderator: Aug 3, 2018

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