Accountants for Contractors

Working with a good contractor accountant can ease many of those difficulties.

Perhaps you have just started your contractor business after becoming disillusioned with traditional full-time employment. Or maybe you have a long contracting history and have no plans to change to full-time employed work any time soon.

Whatever the case, AccountantFor have all the necessary skills and expertise to assist you with your tax paperwork, including corporation tax, business insurance, and other essential aspects.

We help you minimise your tax liability as much as legally possible, working quietly in the background while you continue to make your business a success.

What Does The Word ‘Contractor’ Mean?

“Contractor” is a term used to describe someone who is self-employed and works for each client either for a pre-agreed duration or until the contractor has completed a specific task.

Contractors’ pay tends to be decided either on a per-hour basis or through a fixed fee written into the contract that was initially signed. Either way, contractors are usually paid at much higher rates than permanent employees undertaking equivalent work.

Many people are attracted to contracting due to the flexibility it would afford them. The worker can pick the specific assignments they take on and their work hours.

Nonetheless, an Accountant for contractors can assist them by assessing how much they are earning from their way of working and, secondly, comparing it to alternative approaches. The contractor can consequently enjoy stronger financial peace of mind.

How Can A Specialist Accountant Help Contractors?

Ultimately, it is a personal decision to hire a contractor-specific accountant. However, by partnering with one, you could find that you can lower your tax burden and free up precious time for you to spend on other work-related pursuits.

Even if you haven’t yet set yourself up as a contractor, this accountant can smooth out many of the procedure’s usual wrinkles. An accountant for contractors can also keep you informed about your tax obligations — which, over time, could change due to changes in tax law itself.

As you could struggle to be hired for many jobs unless you work through a limited company, an accountant can establish one for you. They can also advise you on such matters as deducting business expenses, keeping records, and complying with relevant tax legislation.

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Things to Consider When Choosing your Contractor Accountant

What are their qualifications?

Working with a qualified accountant is non-negotiable. At AccountantFor, we only partner with contractor accountants that are qualified and experts in their field.

At the very least, your accountant should have an AAT foundation certificate, the entry-level qualification required for costing, bookkeeping, and other basic financial administration.

Do they specialise in contracting?

As a contractor, you must comply with detailed and complex legislation surrounding rules around expenses, IR35, and other essential aspects. If you get these wrong, there can be significant consequences.

On top of that, you should keep your tax bill as low as legally possible.

Some contractors achieve this by only paying themselves a minimum salary and declaring the remaining income as dividends.

However, several issues arise from this option if you get it wrong, and the HMRC could fine you.

Not every accountant understands contracting and may struggle to offer you the best financial advice. We only work with accountants that know the legally tax-efficient way to save you as much money as possible on your tax returns.

What fee do they charge, and what is involved in that fee?

Each accountant will charge a different rate for their accounting services, and the fees can vary significantly. Some charge as little as £25 per month, up to over £100 per month.

Bear in mind most accountants also quote rates, not including VAT. So if the fee is £25 per month, it is closer to £30 per month.

As well as understanding how much an accountant charges, you should also understand what is included in that price. Here are some non-negotiables:

1. Annual company accounts
2. VAT filings
3. Company tax returns
4. Dealing with the HMRC
5. Specific contact hours for questions and advice

What isn’t part of the accountant’s retainer fee?

While it is essential to understand precisely what is included in the fee quote, you must also know what isn’t included. Standard services that aren’t always included in a retainer fee include:

• Limited company formation
• Companies House filings
• Personal tax calculation
• Self-assessment tax return
• Payroll
• References

Most freelance limited company accountancy firms will require you to sign an engagement form beforehand, specifying what is included and what isn’t as part of the fee, including their terms and conditions.

However, if you are still unsure, you should ask for clarification.

Frequently Asked Questions About Contractor Accountants