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Running Your Own Company

So you’re thinking of taking the plunge
Setting up as a freelancer or contractor. Great! You’ve had enough of the corporate politics, the excessive hours that it seems you are expected to do, and of course without any extra money as recognition of your blood sweat and tears. Then there’s the managers who can’t (manage that is)! You can probably even name the star of your very own Dilbert saga. So go on, go for it. You know it will be worth it. It’s easy. Just follow these simple instructions. Yes, all of them. In fact we’ve tried to simplify them as much as we can, especially for you. You’ll have a lot on your plate of course, getting the right contract. You will probably be best using an agency for this, and they are very good at getting you placed. It’s in their interest to do so, and of course you’ll find that once that happens, everything progresses so fast.

Limited Companies and IR35
First you will need a limited company so that you can trade. Then there’s avoiding the dreaded IR35 and the reduction in your income. But can you (avoid IR35 that is)? Well, just to make sure, you simply need to study all of the tests used by the Revenue to check you really do have everything in order. If not? Well in that case you will need an accountant too. And not just any old accountant either. Accountants are a bit like lawyers. The whole thing is so complicated that you get specialists. So make sure you get one with the right experience, or it could cost you (once for their fees, twice for all the work you will have to put in yourself, and still more for the extra tax you weren’t expecting to pay).

More Work
Okay, so you have your contract, you have your company, and you have your accountant. Nearly there? Well, not quite! Just a few other things you need to do as well. Let’s start with the payroll: yes, you will need to arrange to pay yourself. Calculating the correct tax and National Insurance deductions are really quite simple for any trained book-keeper. Oh! You aren’t a trained book-keeper. Right! Well never mind, I’m sure you’ll get the hang of it.

DIY
A useful tip, by the way The Tax and National Insurance calculation tables and guidebooks are great for getting your monitor up to the correct height. If you are still a little short (really quite unlikely, they are rather thick), you could add the VAT guide as well. Sorry, did you say you hadn’t registered for VAT? Well it won’t take you long, unlike the returns you will need to complete each quarter. Since it will be some while before you get an inspection from either the VAT man, the tax man, or both, you will still have oodles of time to set up a good record system and to input all of the data you will need to keep, Company registers, PAYE forms - P11, P32, receipts, invoices, timesheets. From these you will be able to produce your year end PAYE reports, P11D, P35, P11D(b), quarterly VAT returns, Company Annual Return, Corporation Tax liabilty etc.

FreeTime
So, did you get all of that? Fine. So you’ll be ready get started now. Now you can enjoy all of the other benefits of being your own boss with all that hard earned spare time you will have.

O.K I get the hint, let me go and Order a FreeTime Package Now !

Outsource
Oh, by the way, we can do all these things listed above for you, for just £115 a month!! And if you’re already a contractor or freelancer and recognise this scenario all too well, the good news is we can rescue you too. All you have to do is send us your expenses and timesheets each month, then go ahead and enjoy that holiday you will no doubt need by now. And you will be able to take it when you like! Now, while you enjoy all the benefits of owning your own company, and being your own boss, we will be doing the hard, boring stuff for you. Now that’s what you thought having your own company was really about, didn’t you. And so it should be.