Invest in a specialist accountant for contractors
To ensure that you don’t stumble straight away and get caught out by complex legislation, it is worth investing in specialist contractor accounting services to get your business up and running.
Here at Approved Accounting in Havant, we have helped many first-time contractors make the step to starting their own company and provide accountancy packages, especially for contractors, freelancers and consultants across Hampshire, the South and London.
Understanding contractor legislation
At Approved Accounting, we can answer your questions and guide you on the most tax-efficient way to operate your company. Our extensive knowledge of contractor-specific legislation makes us the perfect partner for everything from determining take-home pay to registering for the Construction Industry Scheme, claiming expenses, tax planning and long-term strategy.
A beginner’s guide to contracting accounting
There are many benefits to leaving permanent employment and setting up on your own. Beyond the obvious advantages of flexible working and making your own business decisions, the chances are that as a contractor, you are likely to earn considerably more than permanent workers. And, with more employers seeing the benefits of hiring independent contractors, too, there are many opportunities out there.
At the same time, however, there are risks to consider as well. As a freelance worker, you do not enjoy the same rights as employees. For example, you are not entitled to redundancy pay, paid holiday, or guaranteed work beyond the period of your contract. This is why weighing up the pros and cons is very important, and the best solution is not the same for everyone.
If you do choose the freelance route, it is essential to consider the terms of every contract you undertake, and with some very complex legislation (primarily IR35), it is important that you seek expert advice to help you with this. When you set up your own Limited Company, you should remember that you become responsible for your own taxes, cash flow and expenses.
Contractor accounting services
Approved Accounting can guide you through the tax implications and financial impact of each contract you are offered, helping you mitigate risks against contractor legislation and ensure you are engaged on a genuinely ‘self-employed’ basis to ensure you are working under legally compliant arrangements and do not fall foul of the complex rules on ‘employment status’.
The benefits that we can bring to ensure that you run a successful contracting business:
- Help you set up as a Limited Company and deal with all HMRC and Companies House administration.
- Set you up as part of the Construction Industry Scheme (CIS) – where applicable.
- Assist you in maintaining online accounting records, compliant with ‘Making Tax Digital (MTD) regime.
- Submit your corporate tax returns to HMRC
- Draw up directors’ self-assessment returns.
- Provide tax advice and recommendations for long-term planning.
- Advise you on dividend payments to ensure tax efficiency.
- Run your monthly PAYE returns and submit data to HMRC.
- Process your quarterly VAT returns.
- Undertake National Statistics reporting where applicable.
- Manage your Construction Industry returns – where applicable.
- Remind you of important deadlines.
- Answer any day-to-day questions you may have relating to contractor tax affairs.
Xero Gold Partners
As Xero Gold Partners, we can show you the most efficient ways to get the most out of its applications. From automatic invoicing to managing your expenses, payments, and cash flow, it’s all stored in one place.
We appreciate that financial terminology can often be difficult to follow, so we promise to always say it simply and cut the jargon wherever possible. Always at the end of a phone or happy to meet face to face, we will ensure that our dedicated team of accountants always make your best business and personal financial interests our top priority.
Changes to legislation
As your specialist contractor accountant, we will ensure that you are kept up-to-date with the latest information on IR35 and can advise you on the best ways to operate and protect your company.
Cost-effective contractor accounting fees
At Approved Accounting, we offer economical financial solutions based on your contracting needs and budget. We offer fixed monthly accounting plans bespoke to your business needs and promise that there will be no hidden costs.
If you would like to know more about how contracting works, the legislation that needs to be followed, or just want advice about tax generally, please contact us today for information on our contractor accounting services.
