New to Contracting?

For those new to contracting you can be assured of the best service available by using KJM Accountancy. You will have direct access to Ken Mactaggart , a fully qualified Chartered Accountant with in excess of 25 years experience in private practice and industry. Our systems are simple to use and we will take the time to explain these fully so that you are confident that all reporting requirements will be met. If you wish an initial meeting in any of our offices this can be arranged free of charge when we can explain our methods and what we will need from you.

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The first step in entering the contracting arena is to secure a contract. Once that has been negotiated you will need to set up a Limited Company. This can be done through our Company Formation centre and you will have a Limited Company with a name of your choice in 24 hours. Thereafter we will help you with organising and obtaining vat and Inland Revenue registration. The Inland Revenue registration is required in order to set the company up under the paye and national insurance system so that salaries can be paid by your company. We will also assist with opening a business bank account with our recommended bank, Cater Allen Private Banking. There are a number of forms to be completed at this stage but provided you can complete the basics we will do the rest.

You will need to consider whether you believe IR35 has an impact on your company. Full details on IR35 are available on this site†and we also provide a contract review service to determine whether IR35 would apply.

By contracting through a Limited Company you can be certain that
you will be operating in the most tax efficient manner possible. There are many take home pay calculators available on the web but they all contain varying assumptions about expenses and an individualís circumstances which is where the differences arise in what is reported as a take home sum. What you can be sure of with your own Limited Company is paying less tax overall and having complete control of the funds that you have generated through your own efforts.

Once you have commenced your contract we can provide an invoice template so that you can charge your client for services provided. We will also provide you with an annual salary schedule to be used to pay a director’s salary on a monthly basis and make quarterly payments of tax and national insurance to the revenue.
To meet the reporting requirements of the revenue and the vat office we will need you to complete our bookkeeping spreadsheet which is available in our downloads section. Completing this on a quarterly basis will allow us to provide you with the details to complete and submit the quarterly vat return. Completion of the bookkeeping spreadsheet seldom takes longer than 10 to 15 minutes each month.

For more detailed information about these initial steps please contact ken@kjmaccountancy.com or call him directly on 07770622242