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FAQs

Is it difficult to start contracting through my own Ltd company?

No! Sign up with Pulse and you’re ready to go. We'll form your company and take care of all the compliance with HM Revenue & Customs and we’ll let you know every time there’s something that needs your attention. You don’t have to wait for anyone’s say so before you can send your first invoice.

 

Should I have a separate company bank account?

Yes you should. It makes it much easier for you to keep on top of what your company is doing if you keep its transactions in a separate bank account. Any reputable high street bank should be able to set you up with a business bank account within a day or two of meeting you.

 

How much is this all going to cost me and how do I pay?

Not as much as you might think.

Please see our prices page to find out what you’ll be getting for your money.

You can either pay by direct debit each month, or pay upfront for a year to get a whopping 25% discount! Simple, easy, no fuss.

 

Are there any other costs?

There are no hidden costs with Pulse. The only time we’ll charge you more than the service level fee that you’ve chosen is if you ask for specialist tax advice, such as inheritance tax planning, and we’ll talk to you about additional costs like that first. There are still costs involved in running your own business that you’ll incur – such as public liability insurance cover. However we'll let you know and guide you as to what those are.

 

How much of my invoice is mine and how much must I put aside for tax?

Corporation tax is charged at 20% of company profits. So in most cases we would recommend saving 20% of your net invoice amount to cover future corporation tax bills.

If your sales are more than £83,000 a year then you have to register for VAT. depending what line of business you are in. VAT is added to your net invoice at 20%.

 

Do I need to be VAT registered?

If your sales invoices are going to be £83,000 per year or more then yes. VAT should be charged to your clients at 20%. However if you are a medical locum then the services you provide may be exempt. If you deal directly with patients then you do not need to register for VAT, so it makes providing your locum services through a limited company very simple

 

How do I get started?

Email the Pulse Accounting team at info@pulseaccounting.com or call us on 0161 300 9675.  You’ll get straight through to an account adviser who will guide you through the initial steps in setting up a company and joining Pulse.  After that you’re ready to go.

 

I need to keep working for my clients – will there be a long delay if I set up a company?

Forming a company online can be done in as little as 1 day and you should have all the documentation you need within a couple of days.  And you’ll be able to set up a business bank account on the spot at most high street bank branches. 

 

Do I have to wait for the Revenue to tell me it’s ok to trade through my new company?

As soon as you’ve formed your company you’re ready to go.  We’ll take care of everything with HM Revenue and with Companies House and keep you informed every step of the way.

 

I’ve never had a company before – I don’t know what I have to do.

Our account advisers have years of experience in forming companies and keeping them on the straight and narrow as far as the authorities are concerned.  We’ll make sure you’re told in good time about everything you need to do and we’ll explain the whole process to you as well.  There are help sheets and guides as to how to use FreeAgent on our website too.

 

Will I be affected by IR35?

The IR35 legislation is designed to catch “disguised employment” in the form of contractors operating through a limited company but who are, in most respects, employees of their end client.  If your contract falls within the IR35 legislation then you would have to pay PAYE and national insurance on all your income after a flat 5% allowance for administration costs.

Each engagement is treated on its merits by HMRC when considering the IR35 rules and there are no hard and fast rules as to what will breach IR35 and what will be outside its scope.  For more info call one of our expert advisors for a chat on 0161 300 9518

I've been told by an offshore payroll company that I can get 90% by using them. Is this legal?

Simply put, HMRC now have new powers which ultimately means that you can use a scheme but you will have to pay the tax upfront and then go through an appeal process to get it back, should the scheme be found to work. This is highly unlikely to be beneficial to you as you will also pay penalties and interest. Hundreds of contractors are now receiving Accelerated Payment Notifications (APN's) and are faced with huge tax bills which they were told by offshore payroll providers that they wouldn't have to pay. 

When you can retain up to 84% by working through a limited company with no risk, this model is becoming less and less viable.

 

Will I need insurance?

Yes, you are responsible for taking out insurance for your business. How much cover you choose to take and who you choose to take your insurance from is completely up to you, however we recommend Caunce O'Hara who we have worked with for years for insurance for contractors and freelancers just like you.

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