Starting as a contractor

[epopnomis]

So heres the deal, about to finish my staff job that I have been working with for more than 5 years and I've decided to go out in the working world as a contractor. I have a few questions.

1). Should I set up my company first or set up a business bank account first. Which needs to be done first.

2). I should be earning a considerable amount so I assume I will need to register for VAT.

3). The position is due to start mid next month should I be getting this all organised now and roughly how much does it cost to set up myself as a sole trader?

When should I look at employing an accountant?

Any help would be great as I'm slightly clueless round all these matters.

 

[FeuFollet]

1) You will need to set up the company first because the bank will ask you for registration details then
2) Yes
3) Sole trader or company? Your questions point in the direction of the latter, not the former. Maybe you should be looking at talking to an accountant now who can best advise on what status is more efficient for you if you are not sure what the differences are. You won't need an accountant immediately but maybe finding the right one now will help you plan properly. You will have to do VAT and PAYE returns on a quarterly basis and then file your annual accounts.


Don't forget to get proper insurance.

Chances are your client will dictate a number of the choices you have to make in particular limited company and insurance level!

There are plenty of resources online, just google "Starting your own business" and Brian O'Kane's book and website ("Starting your own business") were good resources when I looked into it.

Best of luck