Owning a successful limited company is all about having the right contractor accountant. Every contractor’s business has needs as individual as ripples on a lake. Ask any one of our experienced advisors and they’ll vouch for that statement.
As such, you must make sure that whomever you appoint to do your accounts understands your individual business. Maximising your income to deliver long-term profitability isn’t a straight-forward calculation. There are loopholes and pitfalls around every corner, blind to those who don’t understand how it all works.
Why is running a small business so intrepid? Because calculating tax for limited company contractors remains a specialist niche. But that doesn’t mean finding someone savvy enough to accommodate you need be a white-water ride. If, of course, you have the right paddle.
Compliance and tax-saving – working in harmony
HMRC offers all manner of benefits for compliant, self-employed people. It takes a full time expert to keep up with their many changes and identify those applicable to your business.
Contractor accountants develop this inherent knowledge of how to best present limited company accounts. They follow the changes in taxation law that you don’t have time to.
When the taxman comes a-calling, you don’t want to give him a window of opportunity to investigate further. That your accountant knows those boundaries and your business is worth its weight in gold, alone.
Also, optimising available tax breaks is essential to your business reaping those Government benefits. We’re not talking cannon-fodder, either.
A good accountant will ensure that you remain compliant. That’s their first job. The bonus is that they have the potential to save you thousands of pounds every year. Your limited company accounts in such capable hands will ensure you never pay over the odds.
Saving on your tax bill: an awesome feeling
If you’ve set aside more than your accountant tells you is owing come financial year-end, just: wow! Tax bill paid and a few bob to put towards the summer holiday, to boot. Awesome.
Conversely, knowing that you’ve overpaid and may struggle to claim it back can make you feel you’ve worked for nothing.
Okay, “working for nothing” is perhaps a tad overstated. Even so, you still don’t want to give the taxman more than that to which he’s entitled. You have far better uses for your hard-earned profit than the Treasury. We’re 100% certain of that, too.
Your new partner will deliver an expressly personal service, ensuring you keep what’s yours. And I say ‘partner’ because that’s how you’ll come to view your accountant: an extension of your own business.
It’s a good thing, too. You’ll have questions, and many of them. As they grow to understand your business, they’ll be able to answer them in an instant.
They’ll share the most common aspects of your annual tax return that you can keep track of, too. These, that your limited company accountant should maintain/prepare for you, are:
- PAYE/S660 tax assessments;
- Employers/Employees National Insurance contributions;
- VAT return (often prepared at the end of every financial “quarter”);
- Annual accounts in anticipation of your fiscal tax bill;
- Corporation tax.
In all fairness, a High Street accountant should be able to show you savings on most of those aspects.
What sets contractor accountants apart is their understanding of IR35. To be more precise, they know how to present your finances to reflect an IR35 compliant status. The last thing you need is to have to deal with HMRC.
Contractor-specific accountancy firms will help prevent that. They’ll not only have answers for the taxman, but will also deal with tax office correspondence on your behalf. Now that’s priceless.
Here are few that we recommend if you can see the sense in partnering with accountants who get contracting:
Genuine comprehensive fix fee. At last! A contractor accountant that puts YOU at the forefront of everything. Including unlimited telephone and email access to your very own accountant for help and advice throughout the year.
Tel: 0208 421 7991
Specialist contractor accountants. Complete accounting service, free incorporation, IR35 advice & bookkeeping for £95 per month.
Tel: 0116 243 7868
£95 + VAT per month all-inclusive, fixed-fee accountancy service for contractors. Including unlimited telephone and email access to your very own accountant for help and advice throughout the year.
Tel: 0207 078 0211
PaperRocket Accounting specialise in providing friendly and professional accountancy services to contractors, freelancers and small businesses. Our qualified accountants have over 10 years experience working within the contractor and small business sector so we have a good understanding of what clients want (and what they don’t!) when it comes to accounting and tax services.
Tel: 0800 024 8760
Meades Contractors are a PCG accredited firm, whose experienced team of qualified accountants enables contractors, consultants and freelancers to save tax and boost business profitability, safe in the knowledge that their contracts are protected from IR35.
Tel: 01923 800 444