Contractors face a number of issues before they start to work. We deal with many types of contractors and are happy to help with initial questions new contractors have. We also offer unlimited accountancy help and advice included in our fees.
How it works
- Join us
- We take care of the whole process for you, whether you have an accountant, have started a new business or complete your tax returns yourself.
- Send us your records
- However you keep your records, send them to us via post or email.
- Accounts and Tax Return
- Once we have received your records, we will complete a full set of accounts, and after final checks and approval, submit your tax return
- Customer Service
- We communicate with our clients through telephone, post and email. Our friendly staff are available throughout the year for any help and assistance you may need.
Sole Trader: Trading as a sole trader is a very straight forward way to trade. There are few deadlines and much less administration than there is with a limited company. Contractors who trade as a sole trader will have more take home pay compared to operating through an umbrella company but not as much compared to operating a limited company.
Limited company: Contractors that trade through a limited company are generally operating very tax efficiently. This means that contractors receive more take home pay compared with sole traders or those using umbrella companies. Another advantage of a contractors limited company is that if the company was to get into financial difficulty then the contractor would not be personally liable for the debts the company owes (unless a personal guarantee was signed).
VAT registration: If a contractor decides to trade as a sole trader or through a limited company then they can register for VAT and benefit from the flat rate scheme. This is advantageous as an additional 20% can be charged on top of their fee (which the customer will not mind if they are also VAT registered) but a lower percentage paid over to HMRC meaning an increase in take home pay.
IR35: This is a piece of legislation that prevents contractors operating as ‘disguised employees’. If the relationship between the contractor and the end customer is deemed to be that of a similar one to an employer, employee relationship then it is likely that the contractor is obliged to pay the tax and national insurance that would have been due if they were on the payroll.
If you would like to know more about our Contractor Accounting Services then please contact us.