Contractor Accountants

What is a contractor accountant

If you choose to contract through your own limited company, you’ll need an accountant to look after your tax and accounting needs. A contractor accountant specialises in serving contractors. They’ll be familiar with all the complex legislation that affects the contracting industry, and expert at helping contractors maximise their rewards. Your choice of accountant can have a significant affect on your experience and success as a contractor, so it’s well worth making sure you choose the right one.

Common questions about contractor accountants:

What is an expert contractor accountant?

This is an accountant who specialises in the contractor market, which means they’re used to working with individuals, as opposed to larger businesses, and they’re expert in all the regulations and tax laws surrounding contracting and self-employment.

What to expect from a contractor accountant?

There are a number of tasks that you can expect your accountant to assist with or carry out on your behalf:

Getting started:If you’re just starting as a contractor, or you’ve just made the decision to “go limited” you’ll need to incorporate your company via Companies House, open a business bank account and register to pay VAT, Corporation Tax, and PAYE tax and NI. 

Once you’re trading:You can expect your accountant to run payroll (usually for you as the only employee), submit payroll data to HMRC, deal with correspondence with HMRC, complete your company’s VAT returns, annual accounts and tax return, provide tax planning advice and answer any questions you might have about your tax affairs.

Your accountant may also offer:Bookkeeping through online accounting software, completion of your personal self-assessment tax return, provision of a registered office address, and introductions to third party experts like specialist mortgage brokers, IR35 specialists, insurance experts, financial advisers and CV/interview advisors.

Orange genie Accountancy have got a team of expert contractor accountants. They cover all the major cities in the UK such as London, Manchester, Birmingham, Aylesbury, Liverpool, Leeds, Oxford, Glasgow, Bristol, Edinburgh, Cambridge, Belfast, Hull, Bath, Leicester, Blackpool, Nottingham, Peterborough, Plymouth, Portsmouth, Southampton Stoke-on-Trent and much more. 

Contractor accountant fees

Your contracting business is unique, and your accountancy package needs to meet your specific needs while giving you value for money. It’s also important to know the cost upfront, so there are no nasty surprises later on. That’s why Orange Genie Accountancy offer three different fixed-fee packages, so you can choose the best one for your needs. You’ll also have the chance to reduce your costs and even earn free accounting for life with our unique referral scheme. 

Common questions about contractor accountant fees

 How much do accountants charge for contractors?

Most specialist contractor accountants charge a monthly fee. Fees can range from around £75 up to £150 per month, depending on the firm you choose and the level of service you’re looking for. Care should be taken when comparing prices, as the services included vary as much as the fee. Choosing the cheapest monthly fee could leave you paying extra for additional services later on, so make sure everything you need is included before signing up.

How much does a contractor accountant cost for taxes? 

If you’re just looking to engage a contractor accountant to complete your self-assessment tax return and you intend to otherwise “go it alone” you can expect to pay upwards of £150 plus VAT for this service, depending on how complex your return is and how much time it takes your accountant to complete. However, advice and guidance from a good contractor accountant can make a significant difference to your success as a contractor, and we strongly advise that you engage one on an ongoing basis.

IR35

IR35 also known as the intermediaries legislation, is concerned with whether you’re in business on your own account, or whether you’re a “disguised employee” based on your relationship with your end client. If you’re “inside” IR35 you’ll pay broadly the same tax as an employee would, and this can have a significant effect on your income. Assessing IR35 status can be very complex, and it’s important that you know and understand your correct status. 

Extracting funds from a Limited Company

You may have considerable flexibility in how you extract money from your limited company and it’s up to you to decide. It’s important to align your strategy with your particular situation and goals and it isn’t always just about paying as little tax as possible.

Expenses

As a director of your limited company, there are a wide variety of expenses that you might be able to claim, and these can have a significant effect on your take-home pay. However, the rules can appear arbitrary and confusing, and claiming incorrectly can leave you in trouble. It’s important to understand the rules that affect your expenses claims, so you can ensure you stay compliant without missing opportunities.

FreeAgent

All our clients use FreeAgent’s award-winning Web-based software because it makes it easy to stay up to date and allows us to give the best, most timely advice. Track and update your finances, anytime, anywhere, from any device.

Accounting knowledge hub

Welcome to our Knowledge Hub, the best place to come for information about contracting, accounting and tax. You’ll find online guides, tutorial videos and detailed PDF guides on a range of important topics. 

Useful Links

Taxes

You will have separate personal tax liabilities to your company, and both will require your input and attention. Understanding these liabilities, how to plan for them and how to legitimately minimise them is crucial to your success as a contractor, and your tax planning strategy should reflect your particular situation and goals. Fortunately, your Orange Genie Accountant will be on hand to guide and advise you. 

UK Tax System

Self Assessment Tax

Corporation Tax

VAT

Capital Gains Tax

Inheritance Tax