Software developer contractor

[jonneymendoza]

Im guessing that you are joking, but if you aren't then there is a hell of a lot more to it than that.

of course i am but the general summary of IR35 is to simply prove that you are a business offering a service, not a employee.

things that i have mentioned does help.

 

[JonNorris]

And soon? so not yet....

Just out of interest how many actual Chartered Accountants (whether CA, ACA or ACCA) do you employ? If I were reading into your post in a cynical manner then it would seem you've got a ex tax man some a-level school leavers with AAT quals and a few part qualified guys?

Just playing devils advocate as your post did seem to skirt around the issue and the other poster made the accusation that you aren't [chartered] accountants?

No worries, to be completely honest I'm not 100% sure what levels all our accountants are at because a) There are quite a few of them now, and b) They're always taking exams so it's quite difficult to keep track of.

We divide our client-facing staff into "pods" so our clients always deal with the same team and can get to know them etc., each pod has one senior accountant and a range of part-qualifieds / apprentices - so basically everyone has the option to speak to a fully qualified accountant if they don't want to deal with a junior.

The reason Crunch as a firm isn't chartered is that a firm must be majority owned by a chartered accountant to be eligible - we have a bunch of co-founders and investors who own a chunk of the company each, so in our case it's not possible. Bit of an archaic rule if you ask me, but it is what it is.

 

[Pudney]

The reason Crunch as a firm isn't chartered is that a firm must be majority owned by a chartered accountant to be eligible - we have a bunch of co-founders and investors who own a chunk of the company each, so in our case it's not possible. Bit of an archaic rule if you ask me, but it is what it is.

The purpose of being chartered is to demonstrate to the public a certain standard of work and ethics. Being run and owned by people who aren't bound by those rules would be ridiculous. You could charter a company and the owners/directors would have no professional need to adhere to the standards set, the company could act in any manner they wished and provide the public with terrible advice.

So it's a sensible way to protect both the public from unscrupulous individuals and the reputation of all those who are chartered.

This doesn't mean I think your company is like that as I've never heard of you, just the idea that the requirement is archaic!

 

[Bear]

Actually that's not true, in the tax world if the nature of a transaction doesn't conform to its legal definition then the legal structure can be ignored. Whether this is the same for dividends I can't guarantee, but to state that it says nothing in legislation so therefore can't be true would be to hugely underestimate what can be done by HMRC.

True enough, it's a bit like how HMRC convieniently forget that if they deem you an employee, they forget the fact that you dont receive any of the legal entitlements an employee should, like holiday pay, or employee rights. Nor the fact that if you are an employee, then why should I have to pay employers NI.

 

[redeye_uk]

Hi there,

Thanks for taking the time to register and addressing some of my points

We actually develop our own software which isn't all that dissimilar from Free Agent. Because we develop the software and are an accountancy firm we can do some cool stuff that other software providers can't (e.g. automatic checking and filing of VAT returns online).

This is exactly what my accountant does for me. I setup a user on FA with Accountant permissions and allow him to log in to my FA account. He can then check and file my VAT returns online.

The best thing about a FA account is its mine. It belongs to me.

We have a target turnaround time of four hours to respond to any query we get from a client, and we respond to everything we get.

Whilst 4 hours isnt a long time, it is very much 'big company' customer service mentality. I usually have a response from my accountant within 10mins.

We don't have any exit fees or tie-in - if you want to leave we'll just give you an export of all your data and send you on your way.

Thats good to hear. What format is the export in?

We actually have a whole team of highly-trained plebs who deal with enquiries - every client has their own account manager + admin who looks after them.

I don't know if you've had a bad experience with us in the past but I think you're misrepresenting Crunch quite a bit here. We're a proper, no-messing-about accountancy firm.

Unfortunately first impressions count, and my first impression of Crunch was a job posting on CW jobs. Not for a job with Crunch, but for a contract position based in London. One of your highly trained plebs then contacted me trying to sell me your service. Truely disgusting behaviour.

We spend a small fortune on developing our software and training our staff, and we've got more-or-less the highest customer satisfaction and retention rates in the business.

Why not ditch your software, use FA, and pass the saving onto your customers? Genuine question

Can't speak for PayStream of course - they may well be scumbags.

That we can agree on

 

[jonney_joop]

Interesting thread about contract work.

in terms of expenses, what can be classed as expense? thing generally to do for your business? does this include paying an accountant as well?

i have also heard that even when you close your company, you have to still run it for 5 more years

 

[aln]

I've seen a couple of people put http://www.sjdaccountancy.com forward. Do they generally come recommended then?

 

[redeye_uk]

You're based in Scotland? My old accountants were based in Aberdeen - FW Accounting.

It doesnt really matter where your accountant is based as you'll speak with them on the phone or via skype.

I'd recommend Maslins, but only because I'm with them

 

[oli collett]

Interesting thread about contract work.

in terms of expenses, what can be classed as expense? thing generally to do for your business? does this include paying an accountant as well?

i have also heard that even when you close your company, you have to still run it for 5 more years

Yup accountancy fees are certainly expenseable!

I've seen a couple of people put http://www.sjdaccountancy.com forward. Do they generally come recommended then?

I'm happy enough with them - not cheap, but they've got a huge amount of experience in servicing the IT industry and aren't the sort to bend the rules.

I've heard some absolute horror stories in my time of dodgy accountants, I would be careful of going to someone based on price!

 

[bluesouljah]

of course i am but the general summary of IR35 is to simply prove that you are a business offering a service, not a employee.

things that i have mentioned does help.

Actual terminology is a disguised employee, no contract length over two years unless you want to be in IR35 scope, which I wouldn't want to do. I have all of my contracts IR35 checked and it tends to be having PI insurance and an MOO clause in the contract.

 

[bluesouljah]

I've seen a couple of people put http://www.sjdaccountancy.com forward. Do they generally come recommended then?

I currently use them and they are a bit pricey for the market, but they have a good reputation. Its an accountancy firm pretty much for contractors and so understand IR35 complications. Additionally, within my contracts, I expect my next few contracts to be abroad, so they can handle the dual taxation. This is when I expect them to be worth the value.

 

[jonney_joop]

I currently use them and they are a bit pricey for the market, but they have a good reputation. Its an accountancy firm pretty much for contractors and so understand IR35 complications. Additionally, within my contracts, I expect my next few contracts to be abroad, so they can handle the dual taxation. This is when I expect them to be worth the value.

How much do they charge?

 

[aln]

You're based in Scotland? My old accountants were based in Aberdeen - FW Accounting.

It doesnt really matter where your accountant is based as you'll speak with them on the phone or via skype.

Aberdeen is a 3 hour drive from the central belt, which is where I am. Still, I don't think I need a face to face as long as it's someone trust worthy and who actually responds to communication but it's probably preferable to have the option for when I'm being dense.

I'd recommend Maslins, but only because I'm with them

Noted.

Yup accountancy fees are certainly expenseable!

This seems like a stupid question, but I'm asking anyway. The entire cost can be put on expenses, yeah? So in reality it probably doesn't matter that they're a tad more expensive in the long run?

Actual terminology is a disguised employee, no contract length over two years unless you want to be in IR35 scope, which I wouldn't want to do. I have all of my contracts IR35 checked and it tends to be having PI insurance and an MOO clause in the contract.

You pay a lawyer to do that? Again, I assume this is an expense claim?


The advice is appreciated lads.

 

[bluesouljah]

How much do they charge?

About £125 a month, its an annual fee to have your company registered there, so they get the post. I think that was £120, but I'd rather do the minimum and concentrate on the work.

 

[bluesouljah]

Noted.



This seems like a stupid question, but I'm asking anyway. The entire cost can be put on expenses, yeah? So in reality it probably doesn't matter that they're a tad more expensive in the long run?



You pay a lawyer to do that? Again, I assume this is an expense claim?


The advice is appreciated lads.

I use a company called Bauer and Cottrell:

http://www.bauerandcottrell.co.uk/

If you take short contracts, then they have an annual fee for as many reviews as you may need. I believe that SJD offer the same service, haven't used them though. You will need to get PI, you usually have to send it to the agent as one of the documents to confirm the contract.

Yes, it can be expensed as a company cost, part of securing a contract for service

 

[aln]

Thanks again mate.

 

[rIcK]

I am currently working as a Linux / Networking Engineer getting high part of 25k+ the working environment is good but I typically do not enjoy my job and really want a change. I recently got a pay increase and performance bonus. But the main thing I enjoy about working is programming and unfortunately that is mostly limited to Linux scripts which I am pretty damn good at now

I did C++ at university in addition to this I know all the standard web languages and PHP and I am a good programmer.

I have been umming and arring about starting up my own company for ages, I was going to create some software tailed to fix particular problems and try and sell that to people. I am attempting to create this in my spare time, but this is practically none existent due to working so regularly. I spend my weekends working for a different company in a totally unrelated job since I like to vary things and get bored otherwise, this pays me approximately minimum wage and is a total waste of my time *but* I enjoy it.

I also work for a company on the other side of the country a few days a month doing generic computer things ( fixing computers, setting up vpn etc ) pretty generic stuff. Not difficult but it pays reasonably well.

Simply put my reason for spouting about all this, is it worth me pursuing something like the OP has done? Could it be done in addition to a main job in a working from home type scenario or do most contracts require you to be on site for a period of time?

Also are there any obvious certifications and things which people tend to look for?

 

[FutileBreadMachine]

Actual terminology is a disguised employee, no contract length over two years unless you want to be in IR35 scope, which I wouldn't want to do. I have all of my contracts IR35 checked and it tends to be having PI insurance and an MOO clause in the contract.

The length of a contract is irrlevant to IR35. What matters is the contract and actual working practices. You might be confused with the 2 year rule which states that you can't claim travel expenses if you will be at the same client for 2 or more years. HMRC might even interpret this as the same geographical area for 2 years based on the example on their site.

To the poster above - generally no-one cares about certifications, they want to see that you've worked on the things they are hiring you to do before. Certifications can be good for your own betterment though, and you may find opportunities in a role to apply things you've learnt which means you'll have that experience for your next role.

 

[Amleto]

Simply put my reason for spouting about all this, is it worth me pursuing something like the OP has done? Could it be done in addition to a main job in a working from home type scenario or do most contracts require you to be on site for a period of time?

Also are there any obvious certifications and things which people tend to look for?

You have two problems: 1 - you won't have the spare hours in addition to a main job. 2 - a good programmer straight from uni is very rare ime (and others'). With no industrial s/w exp you'd be bottom of the pile.

 

[JonNorris]

Whilst 4 hours isnt a long time, it is very much 'big company' customer service mentality. I usually have a response from my accountant within 10mins.

Definitely appreciate what you're saying, unfortunately these sorts of things have to happen when you're operating at scale though. We try really hard to keep things as personal as possible, and you'll probably find we have a much more personal service than other firms of our size.

Thats good to hear. What format is the export in?

I believe you'll get a big .xls of all your figures, plus a .zip file of any attachments (photos / scans of receipts etc.) you've uploaded to us. You can get this at any time through our app if you want it, by the way.

Unfortunately first impressions count, and my first impression of Crunch was a job posting on CW jobs. Not for a job with Crunch, but for a contract position based in London. One of your highly trained plebs then contacted me trying to sell me your service. Truely disgusting behaviour.

Apologies, that does sound a little presumptuous. I'll have a word with our sales team and see if we can figure out what happened.

Why not ditch your software, use FA, and pass the saving onto your customers? Genuine question

The 'vision', if you like, for Crunch was a completely integrated online accountancy firm, to a degree that FA / Kashflow etc. can't manage. Our software has a lot more behind the scenes stuff that gives our accountants oversight of what our clients are doing, and we've got a huge CRM install with loads of automation built in to streamline stuff.

In all honesty I'm not sure there would be any savings to be had in using FA - most of the online accountants I see using third-party software charge £70+ per month, and we charge £60. Plus we're not beholden to anyone else's development roadmap, and we can build stuff in based on user demand.