IT contracting - own company? Help!

[gaijingirl]

Does anyone here do IT contracting who has started their own company..?

... and more specifically does anyone know anything about a company called Paystream Management (who sell off the shelf companies and administer them)?

I've been looking at their contract (for providing these services) with gaijinboy and it seems like they cream off shit loads of money - they previously talked about a figure of £26 per week, but reading the small print, they mention an additional admin charge of 2-8% of receipts (amongst other incomprehensible charges).. but I don't know if this is normal???

Can anyone shed any light?

gg

 

[netbob]

Ive not heard of them, but it sounds like a bit if a raw deal. Do you actually need to setup a company? i.e. is it a requirement of the type of contract you are going for that they need to pay you via a company?

The alternative is just to declare yourself self employed and pay your NI and do your tax form once a year.

 

[gaijingirl]

Ive not heard of them, but it sounds like a bit if a raw deal. Do you actually need to setup a company? i.e. is it a requirement of the type of contract you are going for that they need to pay you via a company?

The alternative is just to declare yourself self employed and pay your NI and do your tax form once a year.

It does sound a bit much... Hopefully he'll call them tomorrow and find out more... it's a mystery to me tbh... thanks for that though..

 

[astral]

If you don't want to set up your own limited company you can use an Umbrella company something like Giant Powerhouse, Parasol IT, Liberty Bishop, Lester Sybersolve or JSA.

Most recruitment consultancies won't deal with you if you don't have either a limited company or an Umbrella service. Setting up your own limited company is fairly easy and will save you money, but you'll need a good accountant.

If you need any more information let me know.

Oh and Paystream's fees are fairly standard.

 

[axomoxia]

I suggest you have a look at the forums on http://www.contractoruk.com. The consensus is, unless you will only be contracting in the short term, is to get your own ltd company and accountant.

 

[Iam]

Most recruitment consultancies won't deal with you if you don't have either a limited company or an Umbrella service.

Eh?

Most will actually offer you PAYE as an option too in my experience, although whether or not this will suit your needs, I can't say.

 

[zippypinhead]

Do you realy need to start a limited company straight off. My best advice is speak to a friend who is an accountant or visit one of the many agencies the government runs such as business link and see if they can offer you free advice.

I used to work as a freelance web deisgner and after I went to the tax office and registered I even got some money while the business was not in profit. depending on what part of the world you live in there are somtimes even grants and free training on starting a business. There is abslutely no necessity to pay third parties or agencies for anything other than book keeping services.

 

[Pingu]

Does anyone here do IT contracting who has started their own company..?

... and more specifically does anyone know anything about a company called Paystream Management (who sell off the shelf companies and administer them)?

I've been looking at their contract (for providing these services) with gaijinboy and it seems like they cream off shit loads of money - they previously talked about a figure of £26 per week, but reading the small print, they mention an additional admin charge of 2-8% of receipts (amongst other incomprehensible charges).. but I don't know if this is normal???

Can anyone shed any light?

gg

if you want the advantages of a ltd co but not the hassle take a look at filetravel (google filetravel bootle).

a lot of the contractors we use use them and all have said good things about them

 

[astral]

Eh?

Most will actually offer you PAYE as an option too in my experience, although whether or not this will suit your needs, I can't say.

actually this is become less and less comon with IT contractors.

It has been company policy with the last two IT agencies I've worked for not to take on PAYE contractors.

 

[Iam]

You're using different agencies from me, then.

 

[astral]

You're using different agencies from me, then.

LOL no I work for the actual consultancies, rather than as a contractor.

The main reason is to generate the extra difference between the end client and the contractor. Clients have been getting twitchy ever since HP got screwed for tax and NI when it was decided that they had been effectively employing the contractors.

Besides the IR35 benefits of contracting are well worth the hassle of setting up your own company.

 

[Iam]

Poor old HP...

I've done all three, depending on what's been easier at the time, but having a company can be a load of extra headaches, too, ime.

 

[astral]

setting up your own company certainly isn't the "easy" option, if you want a hassle free life you're better off with an umbrella company. However if you've got the time and energy to invest, and you're an organised person then the monetary rewards can be worth it.

 

[fen_boy]

the fen_wife uses an umbrella company that her agency put her on to, they seem pretty good, I think they're called parasol.

 

[Iam]

you're an organised person

Errr... I work in IT...

 

[astral]

Errr... I work in IT...

*wonders if Iam works for her*

 

[Fingers]

can I suggest you do not under any circumstances use Parasol IT, i have just sacked them due to their customer service going totaly to the shitter over the last few months and their inability to pay on time, they had new computer sytems installed a few months ago and their project management team totaly fucked it up. i keep getting emails from them telling me everythin gis goign to be OK but it does nto seem to have got much better

I am using www.orangegenie.co.uk and they seem pretty good

 

[Iam]

*wonders if Iam works for her*

Ummm... not unless you've had a very recent sex change.

And there was me thinking you'd gone to a trade show today!!

 

[fen_boy]

can I suggest you do not under any circumstances use Parasol IT, i have just sacked them due to their customer service going totaly to the shitter over the last few months and their inability to pay on time, they had new computer sytems installed a few months ago and their project management team totaly fucked it up. i keep getting emails from them telling me everythin gis goign to be OK but it does nto seem to have got much better

That's the one fen_wife uses - we haven't had a problem, but I shall pass this info on.

 

[astral]

That's the one fen_wife uses - we haven't had a problem, but I shall pass this info on.

we've had some fairly substantial problems with Parasol in the last couple of weeks, but before that they've always worked well and paid all our contractors on time.

I don't particularly like them personally as the account director I deal with incredibly slimy, they took us out for an evening of corporate hospitality last month and his behaviour was horrendous. However prior to the systems change, it was really just that I disliked him personally rather than them providing a bad service.

 

[pugwash]

Hi there, gaijinboy here. Thanks everyone for the advice. At the moment I am planning on having my only Ltd company, although it does all seem an incredible hassle
The agency I got my contract through recommeded PayStream and their charges seemed reasonable (£26p/w inc insurance) for the services they are offering, until I got the paperwork back and it includes this term defining an additional Admin charge of 2-8%, which could maybe quadruple the total cost. I spoke to someone at PayStream and they have told me that I wouldn't be paying anything else above the £26, but couldn't explain the term describing the Admin charge. They have promised to get back to me with an explanation. Obviously I have no intention of signing it unless it is satisfacory.
Otherwise I think I will enquire about http://www.filetravel.co.uk/services/selfemployed.php - thanks for the recommendation Pingu
I just wonder if it will create problems having an accountant who's too far to visit - I am London based.

I can't believe I am worrying about accountants. I feel old...

 

[Fingers]

After ditching Parasol, I have had my first month with Orange Genie and they seem pretty shit hot.

Payday Friday, the arseholes at my Agency never bothered to update their records and sent my pay to PARASOL! Grrrrrrr.


Orange Genie were very good and said they would advance my pay until my agency sent them the money and recalled it from Parasol, which I was poarticulary impressed with.

They only charge a tenner for CHAPS as well, Parasol charged a ball breaking 35 quid!

 

[Mr_Nice]

OK I have been contracting for 10 years, and in the old days running your own limited compnay was the way forward, mainly because you could get more of your cash out of the comapnay easily, examples you pay your partner a salary for being yoru secretary and using all her tax allowiance, then you could also put through anything else you fancy Then the governent borught in the IR35 laws to weed out this sort of practice, people running their own limited company are highly likely to get audited.......Then amy companies emrged running umbrella companies, they give you a salary holiday and your an employee you also get around the IR35 laws, you can claim expenses, milegage, meals etc and you will get a didvided.
I am withe ICS independent contractor services and they are the biz, prompt payment and charge £60 a month, I don't need and accountant and don't need to keep my books. Iwould not advice getting a limited compnay anyway PM if you need more info......

 

[A Dashing Blade]

Most of my guys use Giant - no complaints at all, totally on-line, charge "£20-£30" per week with an effective retention rate (ie what %age you actually trake home) of 69% (that's for the £450-£750/day bracket)

 

[t0bytoo]

I had a bad experience with orange genie. At first everything was smooth, but then the nice person who'd answer the phone and respond to emails changed.

Pay stopped coming through on time and so I left.

 

[pugwash]

OK I have been contracting for 10 years, and in the old days running your own limited compnay was the way forward, mainly because you could get more of your cash out of the comapnay easily, examples you pay your partner a salary for being yoru secretary and using all her tax allowiance, then you could also put through anything else you fancy Then the governent borught in the IR35 laws to weed out this sort of practice, people running their own limited company are highly likely to get audited.......Then amy companies emrged running umbrella companies, they give you a salary holiday and your an employee you also get around the IR35 laws, you can claim expenses, milegage, meals etc and you will get a didvided.
I am withe ICS independent contractor services and they are the biz, prompt payment and charge £60 a month, I don't need and accountant and don't need to keep my books. Iwould not advice getting a limited compnay anyway PM if you need more info......

That's interesting. I like the idea of less hassle like accountants/books. But from what I've read on http://www.contractoruk.com/first_timers/company_set_up.html
if you can escape IR35 you're still generally better of with your own LtdCo.
(I reckon I can for the moment anyway - my first contract is only 2 months and is written in a fairly IR35 format.)

What are the disadvantages of an umbrella over a Ltd Co appart from the fee? Will I by able to give my OH share dividends if she is studying and not earning much next year?

 

[Mr_Nice]

That's interesting. I like the idea of less hassle like accountants/books. But from what I've read on http://www.contractoruk.com/first_timers/company_set_up.html
if you can escape IR35 you're still generally better of with your own LtdCo.
(I reckon I can for the moment anyway - my first contract is only 2 months and is written in a fairly IR35 format.)

What are the disadvantages of an umbrella over a Ltd Co appart from the fee? Will I by able to give my OH share dividends if she is studying and not earning much next year?

TBH there are no real advantages these days, yes you can give the OH shares for which he can take a dividend but its not good practice and IF you get audted you will be busted, most accounts advise against this these days. Personally I wouldn't go down that route.....
Own company
1/ your responsible for keeping your own books
2/ winding up the compnay is hassle, what you going to be later in a year say
3/ You will have to keep money aside for corporation tax
4/ Accountant fees

Unbrellla
1/ Monthly Fees, mine are £60 my accountant charged £75
2/ I can move between contracts easily
3/ I just submit expense sheets to claim, mileage, meals, hotels, ADSL and some computer equipment, moby etc

I am no expert I am just talking from experience and an umbrella company is far better.

 

[undercover]

^Same as that.

I had Ltd co's for ten years and no end of greif if you're the slightest bit lacking in getting things done on time..... I went bankrupt last year eek: ) and as that means I can't run a ltd co, been with Giant for a year now and wish I'd gone down that route years ago, probably would have prevented the bankrupcy in the first place. Mind you spending all that money put aside for the taxman didn't help....

 

[Mr_Nice]

^Same as that.

I had Ltd co's for ten years and no end of greif if you're the slightest bit lacking in getting things done on time..... I went bankrupt last year eek: ) and as that means I can't run a ltd co, been with Giant for a year now and wish I'd gone down that route years ago, probably would have prevented the bankrupcy in the first place. Mind you spending all that money put aside for the taxman didn't help....

OOops - Topman

 

[undercover]

as far as I understand it, working through an umbrella company doesn't make you IR35 proof, but many of the umbrella companies I looked at (Giant included) give you a fair bit of cover, finanically-wise, for legal fees and, if you lose, they pay any tax that's due for you.

now where's that bloomin' referral email for Giant so I can get my 75 quid!