How Do I Get Set Myself Up As a Contractor As Cheaply As Possible?

radderfire · 10 Jun 2016 at 13:31

Hi Guys

I want to set myself up to be able to take contracting jobs as a web developer. I am the type of person that doesn't mind taking the time to set things up myself, rather than pay someone else. So, how can I do this by myself as cheaply as possible?

I believe I have to:

Set up a Limited company via Companies House. What is the cheapest type of company I can set up?

Set up a bank account for the above company, which will have to be a business bank account. Who provides cheap business bank accounts?

Learn how to keep appropriate records for the company accounts. I believe these will have to be submitted yearly? I believe I will be required to get an accountant to sign off and submit the yearly accounts, correct?

I believe I will be required to have some form of Public Liability Insurance??? I can't believe I'm going to have many Health and Safety issues as a web developer, but hey!! What is the legal requirement here, and how can I satisfy it most cheaply?

Is there anything else I need to do?

All advice or comments greatly appreciated.

Thanks

paradigm · 10 Jun 2016 at 13:36

You don't "need" to be a Limited Company, you can just as easily go contracting as a Sole Trader, however you will then be technically classed as "self employed" which may or may not have it's own drawbacks for your personal circumstances.

GSXRMovistar · 10 Jun 2016 at 13:40

Yep setup a company online via companies house (30-40 min job), £15
Most high street banks offer free business accounts
Get accountant to look after all financials and admin but also make sure you understand it yourself, cost around £100 a month
Liability insurance, around £20-25 per month
Optional - Register domain name £15
Optional - Register for VAT

radderfire · 10 Jun 2016 at 13:40

paradigm said:
You don't "need" to be a Limited Company, you can just as easily go contracting as a Sole Trader, however you will then be technically classed as "self employed" which may or may not have it's own drawbacks for your personal circumstances.

What about if I am finding work via an Agency? I thought that in this case, I have to have the Limited Company. I believe the reasons for this are so that the Agency is not liable for National Insurance.

Thanks

Diddums · 10 Jun 2016 at 13:43

Have you considered consolidating both your threads and posting in the correct forum?

hyperseven · 10 Jun 2016 at 13:51

radderfire said:
What about if I am finding work via an Agency? I thought that in this case, I have to have the Limited Company. I believe the reasons for this are so that the Agency is not liable for National Insurance.

Thanks

or you could use an umbrella.

AHarvey · 10 Jun 2016 at 15:59

Go and speak to a proper accountant.

They will tell you and help you do everything you need to get it sorted