There are many positive factors that lead people to choose to work as a contractor, for example, a better work/life balance, greater control over their careers and to earn more. One disadvantage to working for yourself is that it is difficult to keep the track of your finances , and pay taxes. Many contractors opt to employ accountants for contractors to reduce the amount of admin they need to manage and allow them to concentrate on the work they contract.
Current on the most recent industry legislation
The dedicated contractor accountants are skilled and knowledgeable in providing professional advice on tax law and tax planning. An accountant for contractors will be informed about the latest laws in the field and any modifications that could be forthcoming. This means that you don’t have to worry about not meeting a deadline or falling in violation of industry regulations that could lead to penalty or fine.
Specific tax legislation
A specialist contractor accountant can understand the way a contractor’s business needs to be managed and the best method to organize the capital of the limited company in a tax-efficient manner legally. They can provide you with a tailored, proactive tax planning and guidance that is tailored to your company and the circumstances you face. They can also be in a position to advise you on about the expenses that can be refunded.
The rules are usually extremely complex when it comes to tax laws particularly when it pertains to contractors. IR35 laws determine if contractors are “disguised employee” – someone who is in essence an employee, but is still able to enjoy the tax advantages associated with contract work.
Fixed Fees
Contractor accountants generally work on a fixed-fee basis without additional fees. They will provide you with unlimited , proactive assistance and advice with regards to tax, company finances and flow of cash, based on the type of service you decide to use. A single fixed-cost per month for accounting can help you manage the flow of outgoings and expenses for business in order to plan and control your cash flow throughout the whole year. Furthermore, regardless of the tasks the accountant performs for you, whether it’s doing end-of-year tax returns or just basic accounting for business The amount you pay for their services is not subject to fluctuations based on the amount of work is being completed.
Time-Saving
Each hour you devote to your financials is an hour that you could be spending on freelance work. If you do not have lots of time to spare You will discover how managing your money reduce the time you have to devote to projects or the things you enjoy.
Support
As an independent contractor, your work schedule can differ greatly each day based on your current contract. You’ll find that managing your financials and filing them accurately can be a time-consuming task. A contractor accountant can make it easier for you to save time, as they manage all your payroll, invoicing and bookkeeping requirements and allow you to concentrate on the business aspect and the things you enjoy.
Accountants for contractors have dealt with a variety of contractors just like you and know that being able to assist with any issues immediately is crucial to contractors. A majority of accounts for contractors assign contractors to an account manager who is familiar with the business and can to answer questions as fast as they can.
When selecting a contractor accountant, what should you be looking for in a contractor accountant?
Standard accounting packages should contain the following items:
Processing Payroll
Access to an accountant who is specialized
Assistance in all HMRC correspondence
Assistance with quarterly VAT returns for the quarter.
Bookkeeping support
Completing annual company accounting
VAT returns
Corporation tax returns
Registration for VAT, PAYE and Corporation tax
There are also packages that offer greater or lesser support based on your business’s needs.
© Jenson Racing Archives
- March 26, 2025 8:12 am