Accounting for Contractors
Accounting IT offers comprehensive accounting services for contractors.
Contracting can be a great alternative to PAYE, especially if you are working in a temporary or fixed term position. As a Limited company contractor, you are party to a range of financial benefits; for example, you are able to reduce your tax liabilities and offset your expenses against your business.
How it works:
- The agency pays your gross fees to your company.
- If appropriate, distribution of your company’s profits as dividends will significantly reduce your national insurance liability.
- Initial planning of the company's share allocation could considerably reduce, or even avoid, any higher rate tax liability.
- Your business expenses can be claimed and set against the company's income.
- If your company is VAT registered, all VAT incurred on business expenditure may be reclaimed. In other cases, it may be beneficial to join the flat rate scheme.
What to do next?
If you are a contractor and would like to set up your own private Limited company, Accounting IT can guide you through the incorporation process. We can provide you with a ‘ready-made’ list of companies over the phone – or, if you wish, you can form an organisation in a name of your own choice, as long as that name is available. Once you’re up and running, every agency you work with will be obligated to draw up a contract that refers to the company you have founded, as opposed to your own name.
Either download our application form here or contact a member of our team who will make contractor accounting easy for you.
At Accounting IT, we make contracting easy. When you choose our accountancy service for contractors, you will have access to your own dedicated bookkeeper, who will be able to assist with all your accounting requirements and streamline the tax return process for you. To find out more, please contact Nicola on 01702 445000.