Contractor and Freelancer Accountancy Services from as little as £19.50 per month
The flexibility and simplicity every contractor and freelancer needs.
- Your own dedicated accountant
- Unlimited help and advice throughout the year
- We take care of all dealings with HMRC and file all necessary returns
- Cloud accounting software
What do you need to consider?
Working outside of IR35 and knowing what is claimable are just two of the important issues when freelancing or contracting. Having knowledgeable accountants who have worked in this area is vital.
As a contractor there are a number of important issues to consider, whether you are just starting out or have already started trading.
Top three things to consider as a contractor
How best to trade?
This is a question that all new contractors ask: whether it is better to trade as a Sole Trader, through a Limited Company or an Umbrella Company.
There are pros and cons to all methods and so it’s important that you choose the right method for you. As a Sole Trader you do not have to take IR35 into consideration (as it is your customer’s responsibility to ensure you’re operating outside of IR35) and it is more tax efficient than an Umbrella Company, but less so than a Limited Company.
A Limited Company is the most tax efficient but there is a bit more work and more responsibilities compared to a Sole Trader. IR35 also needs to be considered if you have a Limited Company. An Umbrella Company is not very tax efficient but can be less hassle which can be more convenient if you only have a short term contract.
It may be useful for you to take a look at our take home pay calculator to get an idea of how much you will take home for each.
The infamous IR35
As a very basic summary, IR35 is a piece of legislation designed to prevent contractors from acting as ‘disguised employees’.
This is when the relationship between the client and contractor is much the same as an employer/employee relationship and therefore the contractor should be paid through the PAYE system. It’s imperative that you have an IR35 review to see if you are inside or outside of the legislation.
If you are caught inside IR35 but trade as though you are outside of it then you are at risk of penalties if HMRC should decide to look into your business in more detail. You may have underpaid NI which may need to be backdated and paid to HMRC along with further penalties and interest. We have hundreds of contractor clients and so our accountants are extremely knowledgeable in all areas concerning contractor tax requirements, and are able to give you honest advice on how HMRC will view your business.
Our accountants would be happy to review your circumstances and give you their opinion on whether or not your business falls within the legislation, meaning that you can be safe in the knowledge that you are trading in the correct way.
Registering for VAT as a contractor
If you trade as a Sole Trader or through a Limited Company you can often take home a substantial amount more if you were to register for VAT (typically on the Flat Rate Scheme).
As long as your customers are VAT registered they can reclaim the extra 20% you charge to them when submitting their own VAT Returns, and as such it will not cost them anything extra.
If you were to register on the Flat Rate Scheme you would then pay over a smaller percentage of the VAT collected from your customers and keep the remainder, resulting in considerable savings and larger profits for your business.
Still have questions?
Our accountants would be happy to discuss them with you and identify what is the best fit for both you and your business, and to explain what’s involved with contracting in more detail.
We specialise and have the experience
Our specialist contractor and freelancer accountants have a wealth of experience and qualifications from the major accountancy and tax associations such as ACCA, ACA, AAT, ICPA, IFA and FTA. We have a large number of contractor clients and subsequently a lot of experience in the various industries contractors typically operate in, allowing us to offer specialist advice for both you and your business.
We also benefit from a broad range of experience in dealing with clients of all shapes and sizes, meaning that we can offer advice on situations many local accountants or specialist contractor accountancy practices will not have experience of.
Our accounting support to freelancers and contractors covers issues such as IR35, VAT schemes, tax efficiencies and improving your take home pay.
Your very own dedicated accountant
Once you sign up to our accounting services you are assigned a dedicated accountant. They are there for you from the word go. Contact them anytime during the working day via phone, email, instant messaging or even video conferencing. Making ourselves accessible is of paramount importance to us, and we do everything we can to remain as flexible as possible in our way of working.
Unlike many other accountancy practices that specialise in looking after contractors, all of our accountants work from our main office and we never outsource work. We offer our clients unlimited ongoing accounting support which helps new clients whom often have lots of questions about running their business and how best to manage their tax affairs. Rest assured that we have heard almost every possible question many times before and will always be on hand to offer you help and support as and when you need it.
We have also produced a guide written in plain English that we offer to our new clients which gives a comprehensive overview of the tax system and explains what your responsibilities as a business owner are.
What’s included in our Contractor package
- Your own dedicated accountant
- All necessary accounts and returns to HMRC and Companies House
- Easy cloud accounting software
- Regular tax efficiency and business recommendations
- Representation in the event of an HMRC investigation
- Business guides and resources
- Unlimited help and advice via Skype, email, phone & live chat
- Offices in London, Wirral and Warrington
- Automatic regular reminders for all of your important deadlines
- Free review of your website and online marketing
- Access to a financial advisor, legal advisor and insurance broker
All of the above is included from just