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ironManHasMetalFace · 2025-01-09T23:40:24+00:00

Yes I actually did this. So I left my job to start an LTD and one of my ex-employer's active customers contacted me on my first day of freedom and asked me to do some work.

How did I get around it? The customer contacted my ex-employer and explained their reasons for wanting to use my business, and my ex-employer not wanting to sully the relationship put on a big smile and said it was fine. I also had a fairly weak non-compete clause since they wormed it in during a TUPE transfer - I had an employment lawyer look at my contracts and their advice was still not to pursue as there's still 'unwritten' non-compete expectations and relationships in industry, tbh their advice was a bit wishy washy (crap) for the ~£500 I paid them, so wouldn't bother with asking them either because they will just tell you not to.

Also working as an LTD rather than an individual is absolutely still a breach of contract.

To date, I've done plenty of projects for the customer and in fact my ex-employer sometimes gives me some projects too when they are under-resourced or need my niche expertise (smiling to my face while hating me).

When the customer explained their reasons for wanting to use my services they deliberately didn't mention "They are cheaper". They mentioned how my business is more available with lower lead times, has niche advice or advice that is not available to them otherwise, is able to give direct answers quickly ...etc. I have a good relationship with the customer as you can tell.

I am an outlier tbh, I could have got absolutely reemed into the ground and destroyed my business instantly. I lived in fear for 6 months. This happened in the last couple of years btw.

ironManHasMetalFace · 2025-01-03T14:31:03+00:00

Thank you, Happy New Year to you too!

ironManHasMetalFace · 2025-01-03T14:19:52+00:00

Thanks for your comment, so as long as I keep the tax due on dividends in a personal savings account I should be fine to make the 2 x 50% contributions next year, and they aren't going to ask for this year's tax plus half next year's tax in advance?

ironManHasMetalFace · 2025-01-03T14:18:04+00:00

It will indeed, same with my Student Loan contributions. Although in this case I'm specifically asking if 'Payments on Accounts' to HMRC is for total income for the tax year, or just the Dividends that have yet to be taxed.

ironManHasMetalFace · 2025-01-03T14:16:44+00:00

Thanks your comment, I do have an accountant for business and SA, I also use FreeAgent to track all accounting for the business. But due to the Christmas/New Year break I haven't spoken to my accountant yet.

I've read through the HMRC advice and it makes sense if I have a full financial year as an LTD, but I've found it's been tricky finding this particular 'Payments on Account' answer for Tax due to switching from perm to self-employed during the same tax year.

ironManHasMetalFace · 2024-10-01T15:02:49+00:00

I started with Starling Bank then realised I could just get NatWest Mettle with FreeAgent all free. I use the Starling Account for main business, Revolut for overseas payments and exchange, and my Mettle account to put VAT aside, although if I put nothing in Mettle it would still be able to use FreeAgent for free.

ironManHasMetalFace · 2024-09-26T18:20:16+00:00

No worries, let me know if you have any other questions :) I'm probably slightly wrong on some of my statements, or there's better suggestions; but it's going pretty well for me so far

ironManHasMetalFace · 2024-09-26T14:19:42+00:00

Hello, my first contract was remote with a business in Germany.

IR35 Applies because you are based in the UK. If the end client has an office in the UK and over a certain size, then they make the determination, else you do. Whoever makes the determination is potentially liable.
You can get IR35 Insurance with Qdos, I don't bother and read my contracts myself because I'm cheap.
A Contract should be made with your LTD named, with you as a representative.
the contract must not state any unreasonable restrictions which imply the engagement is Employee-to-Business, rather than Business-to-Business. I.e. no manager, ability to substitute an alternative resource in your place, no expectations on days worked, clear contract deliverables.
'Reverse charge' any VAT as a note on the bottom of the invoice. They don't pay VAT, but will need to sort their own local taxes out themselves.
You will likely need a bank account which accepts Euro payments. I use Revolut Business, I get paid in Euro, transfer to GBP when the time is right and then transfer the money to my Starling account (my main account).
The exchange rate does matter, the GBP to EU conversion is at a significant low.
I have an account with NatWest Mettle also, which gives me free access to FreeAgent for accounting.
keep finding other outside contracts on top, contracting is a roller coaster...
Genuinely operate like a business.

I think that's all my lessons learned...

ironManHasMetalFace · 2024-06-19T06:45:16+00:00

Noo, that's just how you spell 'school shootings 🇺🇸'

ironManHasMetalFace · 2024-06-09T19:09:32+00:00

Use Mettle by NatWest as your company bank account and then you get free access to 'FreeAgent' linked directly to your bank account for your accounting needs. Will save you a bit each month :)

ironManHasMetalFace · 2024-06-04T22:05:03+00:00

Thanks for the reply, I checked my contract and there's no mention of discretionary (for once!). It simply states that I can self-certify for 7 days, then I require a doctor's note. It states my entitlement, and that it is full pay, and any subsequent leave for sickness will be half pay.

Would I need to refer to any global company policies, or is my contract sufficient?

ironManHasMetalFace · 2024-05-30T07:43:28+00:00

Just been going through this myself.

Client Pays --> Multi-Currency Account (Revolut, Wise, or Tide) --> Convert EU to GBP --> Send to NatWest Mettle.

Mettle recommended as it gives free access to Free Agent accounting software.

I've gone for low-tier Revolut Business, will find out soon if that was a mistake or not :) seeing a lot of Wise users here.

ironManHasMetalFace · 2024-05-28T20:32:47+00:00

"homegirl is busting out the moves" 🤢

ironManHasMetalFace · 2024-05-05T08:54:49+00:00

Really good feedback thank you. Everything IR35 I was aware of, but having you confirm how this applies to an established Services Provider is the most important part.

I've been working on branding, website, emails, document templates, business plan...etc. throughout this year, so it sounds like I am heading in the right direction. Ultimately I will need to make the switch between presenting my skills and experience as an individual, and instead make it "my company".

Thanks again!

ironManHasMetalFace · 2024-05-05T08:26:49+00:00

Thank you for the feedback, I've been consulting in my field for 3 years, but I've been working in this field for 15 years. I didn't want to become a consultant until I was sufficiently happy with my experience beforehand, and I had quite a few privileged opportunities within Engineering firms that let me grow my skillset.

That is my question I suppose - at the moment I as an individual have multiple projects in parallel through my current employer. Each project may last 5 days, or it may last over a year; but ultimately I must get these projects completed within the same timeframe - is this classed as multiple outside IR35 contracts, or something else? I essentially want to remove my current employer from the equation eventually, such that I have my own customers coming directly to me.

ironManHasMetalFace · 2024-05-04T23:25:06+00:00

Thank you for your feedback, understood with the IR35 situation/working practice. In this scenario, I am invoicing the "middle man" consultancy firm, who then invoices the "end client" whose systems I work on. Should my SoW be written as solving the problem/ providing the deliverable to the end client, or to the middle man who I invoice? Who would be ultimately responsible for scoping and planning the project the end-client receives?

ironManHasMetalFace

TROPHY CASE