Case Study – Poole Process Solutions Limited, Director Neil Hickman
I'd be lying if I said I wasn't slightly afraid of my new self employed status. After all I'd been employed on PAYE longer than I cared to remember. And worrying about Tax, VAT, Bookkeeping, Annual Returns and Corporation Tax (whatever that is) was the furthest thing from my mind.
There was also the not insubstantial problem of incorporating a company and registering for all the aforementioned Taxes. Additionally I'd been made aware of IR35 and new that the implications were pretty serious for someone in my position.
I spoke to several accountants who in honesty offered some great advice until it came to the dreaded IR 35 question. Then a guy I'd previously worked with and was now in the same boat suggested I talk to Nigel Simmons of Acconomy Chartered Accountants.
Nigel is one of 100 or so UK Accountants who is qualified and accredited by The Professional Contractors Group to deal directly with contractors and consultants – The group of which I was now a member.
Nigel immediately took control of the myriad of paperwork that was threatening to sink me before I'd even started and really got me organised...
- Company Incorporation & Registration
- VAT Registration
- Payroll & National Insurance (is this relevant?)
- An automated Bookkeeping System – I hand over invoices and Receipts Nigel's team inputs the data and my Books are bang up to date
- VAT Returns completed on time, accurately and without any penalties
- Tax Calculations and Returns completed ahead of schedule with absolutely no unforeseen payments to find
But In Honesty That's Not The Best Of It...
Having organised what Nigel calls... 'The Mundane Stuff' which incidentally is highly automated and lightening quick. It meant that we were able to meet on a regular basis and discuss profitability, my tax liabilities and importantly ways we could mitigate them.
I now know that from the conversations I'd had with the other Accountants I can conservatively estimate that my year one tax savings were in the region of £2,500. The proactive tax planning ensured that as well as paying the least amount of tax legally possible, I was also able to manage cash flow to make tax payments on the due dates. Of equal importance was having the cash available to pay dividends.
Nigel's thorough understanding of IR35 and the ongoing back up he receives via the Professional Contractors Group is invaluable. Apart from the evident tax savings I have made for which I am very grateful, there is also the peace of mind that comes from dealing with a specialist and professional, but one who can communicate in plain English.
I can whole heartedly recommend Nigel's services and that of his colleagues at Acconomy. If you are a contractor or consultant with any IR35 concerns do yourself a big favour and give him a call.
Neil Hickman Director Poole Process Solutions Limited
IR35 News, courtesy of PCG
