Startting new business

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.

Hi, been contracting 6 years now, u will likely need an agent and I found using one of the contractor management companies the most painless way of getting started and they have been supportive over the years as well.
( Agents come and go!)
I used CxC, ask for Olga . They have web information, search them.
Important to get set up well from the start or there will be delays in getting paid.
I suggest you get two company accounts- transferring VAT, and tax in to a deposit account so that you don't hmm overspend in the heady first few months

Only connection - a happy client)

http://www.askaboutmoney.com/showthread.php?t=165489&highlight=Contracting

search on here if allowed , contracting well covered

Can you tell me how much these lads charge for the service are they reasonable, just don;t want to get ripped off.

Kerak said:

Hi, been contracting 6 years now, u will likely need an agent and I found using one of the contractor management companies the most painless way of getting started and they have been supportive over the years as well.
( Agents come and go!)
I used CxC, ask for Olga . They have web information, search them.
Important to get set up well from the start or there will be delays in getting paid.
I suggest you get two company accounts- transferring VAT, and tax in to a deposit account so that you don't hmm overspend in the heady first few months

Only connection - a happy client)

Click to expand...

Just read that they charge you 5% of your invoice amount, seems like a good bit to me.

5% or 300 a month it was when i started, prob a bit of neg available now
for that they set up your ltd company, did you invoicing, vat and tax returns and handled your expenses.

3600 a year, most of its online now so even easier. maybe an accountant would do it for less but i haven't used one since contracting.

some of my colleagues do the vat and prsi/tax on line but still need an accountant at end of year. If not in to paperwork, receipts , invoices and such I just find it so much easier.

remember if your spend say 2 hours a month doing your own accounts that's two hours you are not invoicing!

as a contractor you should aim at 2000 hours a year, that allows for holidays, bank holidays a few days sick etc. A
Also pension contributions still very tax advantageous.

Be careful using an agent you haven't good references on. I have a coleague , invoicing his Agent at 30euro an hour the agent is invoicing the company at 42.

My last but one agent was getting 1.8 an hour so I didn't expect to much from him, but did get paid.

the multinationals wont dealt with a ltd company or individual , they will insist on a agent.

what sector are you in, IT/IS or ENG ?

Yeah working in the pharma sector as an engineer. Is it not better to set up as a sole trader rather than a ltd company, thats what other people have been telling me. Seems like a bit of hassle to get set up at first but mightn't be too bad doing your own tax once all the initial parts are all set up. 3600 a year sounds a bit excessive. I know they do everything for you but I'm sure an accountant would be far more reasonable.

Yeah working through an agent so god knows what they're going to charge the pharma company for my services.

I don't seem to be able to PM you, but I'm in Eng, Pharma.
Rates are up at moment, Intel, Amgen, BMS all sucking in people.

Not having contracted before , be careful as the agents like sharks will eat you up if the sense any weakness.

One also needs to think like a contractor, who, to the client are dispensable annoyances, who don't get any respect or equality -- but we do get paid well so u have to accept alot of shixxxte. I have seen ex staff who new to contracting in a new company crumble close if not in tears as they way we are regarded by your new clients.

cheers

Kerak said:

I don't seem to be able to PM you, but I'm in Eng, Pharma.
Rates are up at moment, Intel, Amgen, BMS all sucking in people.

Not having contracted before , be careful as the agents like sharks will eat you up if the sense any weakness.

One also needs to think like a contractor, who, to the client are dispensable annoyances, who don't get any respect or equality -- but we do get paid well so u have to accept alot of shixxxte. I have seen ex staff who new to contracting in a new company crumble close if not in tears as they way we are regarded by your new clients.

cheers

Click to expand...

I know some other people working for the same agents and they seem to have only good things to say about them. Not used to be treated with much respect in my current position so becoming a contractor shouldn't change things too much. In relation to expenses do you claim of many?

Well you can only claim whats due, so subsistenace, mobile phone, internet usuage, home office( part ESB/insurance/heating). Travel related to work, professional memberships( EI or similar). Occasional equipment costs/PPE/techical materials. I live near work so overnights dont apply but they are generous if applicable. The cost of using your management company/accountant is a business cost.
You do become a hoarder of reciepts!

Thats interesting as I live in Dublin but the new job is in Carlow Town, I may be able to claim for overnights in this situation?