Contractor Accounting
Are you a first time contractor? Or maybe you have been contracting for many years and need a new accountant? Regardless of your experience in running your business, we will offer you the right advice you need from the start. We help you maximise your take home pay whilst ensuring that your business stays compliant with HRMC and companies house.
Our aim is to be proactive and responsive in the service we deliver by offering full support throughout the year. FreeAgent accounting software is included in our package, to learn more please visit the link below.
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You may ask what exactly is contracting all about, and why is it worth considering? Broadly speaking you are classified as a contractor if you are working under a fixed term contract for a client or through an agency on a specific project or for a determined period of time.
This differs from normal employment as you are providing your skills and time for an agreed price per hour or per day for a temporary period. Your Ltd company is paid by your client or agency for the work you perform and you are then paid by your company. Contracts are more short term than permanent employment although there are significant benefits (outlined below), primarily it means that you will be keeping more of the money you earn.
Advantages
- Take home pay is higher – Quite simply you are able to keep a higher percentage of the income you generate
- Control – You can benefit from higher tax savings as you have the opportunity to pay yourself in a way that suits you
- Legal protection – working through a company reduces the risk of personal financial loss
- Expenses – The ability to claim a greater range of business related expenses including travel, equipment and accountancy fees
- Flexibility – Many clients prefer working with Ltd companies and you retain the option to work on more than one contract at once, time permitting
- Premium software – This gives you greater flexibility over updating your company records. You even have the ability to raise invoices and update expenses just using your phone meaning you don’t have to be sat at a desk to manage your company.
- Working through a Ltd company is the most efficient way of working for contractors, usually this includes when caught by IR35.
- Working with us we can help you manage all of your company affairs and provide you with all the guidance you will need.
Disadvantages
- Becoming a company director does mean you will have responsibility for working in a compliant way. The good news is we can help you to do this every step of the way
- You will be obliged to submit annual accounts and self-assessment tax returns to HMRC and Companies House, however once more we are on hand to get this done for you.
Working through a Ltd company is the most tax efficient way of working for contractors although there will be more admin involved. Although some of it cannot be avoided we can help make this process easier for you and depending on which package you choose with us we can even do the bulk of it for you.
We give you the right software and provide you with a key point of contact who has the experience and know-how to guide you through the processes and ensure you always meet your deadlines. As well as the day to day advice you will need we will prepare all the statutory documents that you will need to submit.
Our accountancy service reduces your workload allowing you to focus on your clients whilst giving you the opportunity to enjoy the financial benefits that come with a Ltd company.
If you’d like to find out more, drop us a line on 01992 668599 or email us,
info@shieldaccountancy.co.uk and you’ll soon be enjoying the support of Shield Accountancy.
Starting your own limited company involves incorporating and becoming a director of your own company, setting up a business bank account and arranging for business insurance. This will be relatively straightforward since we can help you with all of this. We can also usually incorporate your company within 24 hours following these steps.
Choosing a name for your company
Within reason, this can be whatever you like, although, it shouldn’t contain any offensive or sensitive words. We can check with Companies House to see if your chosen name already exists and whether it’s too similar to another name. If taken already we can help you to find another name.
Becoming a Director
There should be at least one and it can be you. Legally, a director should be 16 or over, not an undischarged bankrupt or disqualified from acting as a director.
Registered office address
This is somewhere important documents can be delivered. It can be your home address or Shield Accountancy’s, if you like.
Director’s responsibilities
As a director you would be responsible for filing returns to Companies House and checking that your tax, VAT and national insurance contributions are recorded, submitted and paid to HMRC on time. Although there is slightly more to do in comparison to PAYE employment don’t worry as your dedicated accountant will guide you through this and remind you of any upcoming responsibilities.
Business Bank account
Any money earned by the company belongs to the company until the point it is paid to you as income, this makes it essential that you open a business current account in the name of your company. We work with a number of banks and can help you get this set up quickly and possibly on the same day if necessary.
Business Insurance
In many cases you will need to consider whether you need, or are indeed required, to take out any business insurance. We would recommend reviewing your contract as many clients may have a mandatory requirement for professional indemnity insurance and most will insist on cover for employers’ liability insurance and public liability insurance. We can put you in touch with an approved insurance provider who can advise you regarding the types and levels of insurance cover that you may need.
If you’d like to find out more, drop us a line on 01992 668599 or email us,
info@shieldaccountancy.co.uk and you’ll soon be enjoying the support of Shield Accountancy.
Other Services
Pricing
Most contractors opt to run their own limited company in order to maximise their take home pay. By using a specialist contractor accountant you not only maximise your take home pay but also your time. You can minimise your tax burden, benefit from tax relief and claim expenses against your income. Our experts can guide you through the full range of benefits that come with setting up a limited company.
Basic
- Preparation of year-end accounts
- Unlimited access to online bookkeeping portal (FreeAgent)
- Unlimited access to dedicated accountants team
- HMRC & Companies House correspondence
- Payroll admin for one Director
- Registration for PAYE
- PAYE related submissions
- Tax & accountancy advice throughout the year
- IFA Advice
Lite
Most Popular Package- Everything included in BASIC package, plus:
- Free Company Incorporation
- Dedicated accountant, and unlimited support
- Tax planning adapted to your needs
- VAT Registration & Submission of returns
- Annual IR35 contract reviews
- Preparation & submission of 1 Director’s self assessment
Premium
- Everything included in BASIC & LITE packages, plus:
- Unlimited IR35 reviews
- Bookkeeping including invoice and expense admin
- Payroll for up to 3 employees
- Provision of references on request
- Quarterly financial review
- Registered office address