Thinking of going from Permanent to Contract. Anyone else done something similar?

I work in the tech sector and for a while I’ve been thinking of going into contracting. I am going to go down the ltd company route. I’ve been looking online for some accountants etc but different companies do different type of support

For me the biggest thing is doing as little admin as possible and paying off tax without any hassle. Any FinTech or accountant recommendations are more than welcome, thank you in advance

Might be useful? That’s the only one I’ve heard of, but perhaps other suggestions will follow…


I’m a ltd and very happy with

What is your admin work like? also do they deal with paying tax to HMRC or do you pay it to HMRC? - had a look at them as well but they are a bit more than what you’ve suggested

Is it possible to have an account with tide or monzo as a business and use one of these services or does it have to be the provider that they recommend?

They do everything apart from the payment itself.

It can be any bank. They would expect you to use their bookkeeping software though (Pandle).

ETA - They aren’t bookkeepers.

Okay gotcha! I was hoping for a solution which would pretty much do everything. I need to research this a bit further, think I would prefer to pay tax every month as I do in my permanent role so there aren’t any suprises

Pandle estimates your corporation tax based on the money it sees coming in and out - so you can just set aside some of each month pretty easily.

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Second vote here for :point_up:

You can add bookkeeping onto your agreement though for 50p per transaction. Bank feeds into Pandle and then send them either paper copies/GDrive link of invoices etc, and they handle the rest.

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Thanks, didn’t know that! I do find their bank feeds quite unreliable though.

I use Monzo and Xero. Xero takes care of VAT returns. Everything else I send to my accountant once a year.

Every time a client invoice is paid, the VAT goes into a VAT pot in Monzo. Estimated corporation tax goes into a corporation tax pot. (I have pots for current and previous VAT quarter, and current and previous corporation tax years). Also put into pots monthly for accountancy fees, insurance, etc. Anything left over goes into Available Funds pot. Monzo pots make it easy to separate what you need to save and what you can spend.

When taking dividends into my Monzo personal account, 8.75% of dividends over £2000 goes into an income tax pot (pots for current tax year and previous tax year).

Currently though the IR35 reforms which were announced in the Kwarteng fiscal disaster thingy have been reversed, and who knows what will happen next… Not sure I’d give up perm to go contract in the current climate but only you can decide that.


Yeh I wanted to stick with Monzo as well as I love it for my personal banking needs and would like to have my future business one the same as well

As for your moving in the current climate, it’s something that weighs on my mind heavily. I was hoping it gets better in the new year and make a move. Getting contracts outside IR35 is difficult too, so waiting for a decent one as of now before I can warrant a move as well. Planning to stay put for now but thought I’d start learning and getting some feedback about the whole contracting process

I contracted for a while, money was good, the main thing really is the networking which I wasn’t really good at / couldn’t be bothered with, I went back to permanent work.

My experience was, you do need to know people and be pretty good at bothering them for work to fill in gaps.

Accounting I found pretty simple, it’s not like I was sending thousands of invoices out. I went some contractor rather than Ltd, there was no real benefit of ltd for me.

Hi Rob,

We really appreciate you recommending us here and we are glad to hear that you are happy with the service that you are receiving from us!

We would just like to clarify the point made below about using Pandle as part of our services:

We do recommend using Pandle, as the software is developed by ourselves and we also have an in-house support team to provide assistance for any issues that our clients encounter when using the software. However, we do support our clients using alternative bookkeeping software that they may already be familiar with or feel is a better fit for their business.

Thanks again for your positive feedback on our service, Rob!

Tom @ The Accountancy Partnership