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Introduction
When you start contracting, you may move from a normal job or an umbrella company, into a contract role. As part of this process, there’s quite a lot for you to think about. One of the first things to do is appoint an accountant. When we consider what to look for in an accountant, this is a key question. As a UK contractor, it’s good practice to put in place specialist contractor accountants from the outset. What’s more, if you choose a firm with fair IT contractor accountant fees, this can help set your mind at ease. Therefore, how do I find a good accountant with the best limited company accountants fees?
A thought for accounting for contractors (UK) is you may wonder do I need accounting services as a contractor? The answer here is yes, unless you know how to prepare annual statutory accounts for contractors and do the formal company filing. What’s more, you’d need detailed knowledge in the accountancy arena to get by. Therefore, it’s best practice to appoint an accountant who are both contractor bookkeepers and accountants in one. In addition, a good choice for your business is a contractor specialist who can give accountant business advice when needed.
In this guide, we’ll look at how to find the best accountant for contractors. We’ll also look at how to find the best contractor accounting services (UK). If you work in IT, you’ll search for the best IT contractor accountants in the UK to support your business. What’s more, if you decide to look for cheap contractor accountant, we will go over later what to think about here. Further, we’ll look into the best contractor accounting software (UK) to use in your business. Therefore, let’s learn what to look for in a contractor accountant (UK).
Initial thoughts
Many small business owners look to use some of the best and top accounting services in UK. This includes sole traders, a business partnership and a director of a limited company. As part of this, the best accountants in UK will help you:
- Support your business -this comes by way of day-to-day support for your accounting needs. You should be able to reach them by email and phone or if not, they should come back to you soon.
- Improve your cash flow -this includes advice on where you can plan ahead and make business savings. There’s lots to consider here and they should point out any key areas to think about. What’s more they should point out where your business can make savings.
- Deal with any accounting and taxes issues -this includes reporting with HMRC. Tax forms and returns need completing for your business and they should assist with all of this.
- Prepare and file your limited company contractor accounts. This is a once per year exercise but it’s key that your accounts are correct. What’s more, they should be filed on time each year.
Top accountants for limited company contractors should be able to answer your questions. This will include any queries as and when they arise. What’s more, top contractor accountants (UK) should help you to be tax-efficient when working through your own company.
When you start up as a contractor, it’s quite a change from being a normal employee. This is because when you’re a business owner, you’ll have more tasks from the outset. These include director duties and dealing with your business taxes. In this guide, we’ll look into the best ways of finding a good accountant. Therefore, in your accountant for contractor search, where should you start your search for the best accountant (UK)?
How to search for the best accounting services for contractors
A good accountant for contractors -how to find a good accountant (UK)
Let’s now look at what to think about when we search how to find a good accountant for small business. When you set up your own contractor company and are a new business owner, you’ll need a contractor tax accountant. In other words, they should be able to look after the tax side of your business and your personal taxes too. Therefore, in the search for what to look for in an accountant, where do you start?
As well as finding an accountant, you need to open a business bank account and deal with other initial tasks too. In terms of a bank account, we have a great guide which explains what to think about when you search for the best business account for contractors. This covers the choices for a new business bank account and how you can find the best deal.
In your search, the best option is to choose some specialist contractor accountants. They should offer great value for money accountant services (UK). If you can do this, you will be on to a good start from the outset. Indeed, they should provide you with the best tax and accounting services. What’s more, when you find the best accountant for limited company, they will help you to be tax efficient. Therefore, it is ideal to choose some accountants specialising in contractors. As a result, they should provide a good service in return for their small business accountant fees. What’s more, your new accountancy service provider should ensure you have good backup in the future. To sum up, this is key when you run your own company from day to day.
Limited company contractor accountant -lots of choice
There are lots of good accountants for small businesses out there on the UK market. As part of your search for accountancy for contractors, there are specialist contractor accountants and ones that do not focus in this area. If you work in IT, you can look to start your accountant for IT contractor search. As we mention earlier, it is good to look for one who offers accounting and bookkeeping services for contractors. In an ideal world, this is where you should start your search. The firm you choose should aim to help you grow your business. What’s more, top accountants for contractors should know how both business and personal tax works.
The contractor accounting services specialist should also be aware of how to make tax savings. Indeed, these will be for both your business and you on a personal level. There are lots of ways you can do this and it involves planning ahead. This will include your initial company set up as well as how to take income from your business in the future. They should also advise which expenses you can claim as these all help to save tax. Therefore, your new accountant should be able to help and give advice on what to do going forward.
When we compare contractor accountants, a good accountant will make sure that your company meets all of its filing duties. These filing tasks are part of your director’s duties. Therefore, a contractor accountancy services package should be value for money and will take care of all the tasks for you and your company. To sum up, as part of their service, they should make sure you do not pay more tax than you need to.
Accountancy tips and some more thoughts
Please read of our guide on tax tips for limited company contractors. This contains some great tips and good accountant advice. It will give you lots of good tips which you should know when you have your own business. Indeed, the guide also includes our latest guidance for the best tax planning ideas.
As a UK contractor with your own business, you must meet a number of filing dates as a company director and someone who files a Self-Assessment Tax Return. Even though your accountant will help you meet all these, it’s good to know when you need to file your company contractor’s accounts and other documents. What’s more, it’s also key to know when to make tax payments to HMRC over the course of each year.
We also have guides on limited company taxes and the filing dates for official documents and tax payments. What’s more, there are all also lots of other good guides on this website for a UK business owner.
If you work in or near London, you’ll find that many UK contractor accountants in London are very costly in terms of their fees. Indeed, many UK contractors in the capital will search for the `best IT contractor accountants London’ or `best contractor accountants London’. Therefore, more often than not, many London contractor accountants will be quite costly. As opposed to searching for `contractor accountant (London)’, it’s wise to look around for a good deal. As part of this, you can search for someone who is an expert in the contractor space and offer a value for money service. Therefore, if you work in IT in London, you could search for `IT contractor accountants best ones’ instead. What’s more, you can also lookup ` contractor accountants reviews’ or `contractor UK forum’ to gain more insight.
What to look for in an accountant for contractors (UK)
First thoughts
When we look at what to look for in an accountant, there’s nothing worse than hiring someone who’s not good at liaising with you. What’s more, it’s also not good to hire someone with skills in accounting which aren’t up to scratch. Further, being late when they file documents for your business and you are also something to avoid. Key to note, your accountant show be on the ball and know how to look after you day to day. What’s more, they should give you sound advice and help you plan ahead. This is key when your company will provide your future income. Also, they should be able to answer any questions you have. Plus, if they don’t know the answer straight away, they’ll find it out and let you know. As a result, they will guide you throughout the year and be at hand should you need them.
For a stress-free time, you should check the current market and aim to find the best contractor accountants (UK) to look after you and your business. You could start this with a search for the terms `contractor accountants near me’ or `top 10 contractor accountants.’ The firm you choose should be fair in the price of their services. In return, you should have a dedicated contractor limited company accountant. What’s more, it’s best to have one person as your dedicated accountant to deal with your affairs, rather than a number of members of staff of the same firm. It is also good to know if they will offer face-to-face meetings, should the need arise.
Find the best online accountant (UK)
Some contractors will use the service of online contractor accountants. When they do this, most of the accounting and contact with them is dealt with online. Therefore, if you would like an online service, you could search for the best online accountants (UK). An online contractor accountant will offer a mix of some simple accounts’ software and expert accountancy advice. What’s more, there will be the option to speak with your UK online accountants for contractors and freelancers direct, should the need arise. As part of using online accounting for contractors, you should also take a look into the best online accounting software for contractors.
The best online accountants for small business and best accountants for contractors (UK) will make sure you do not have to worry about most of your duties. What’s more, the best IT contractor accountants (UK) and those who offer online accountancy services (UK) will look after you on a personal level too. Indeed, when you have the best ltd company accountants, it will free up your time. As a result, you can focus on finding the ideal contract work and then focus on this as time moves on.
More things for you to watch out for
You may have heard that there is extra `hassle’ to deal with when you run your own company. Indeed, this comes when you appoint yourself as a director as you have contractor taxation and filing duties to adhere to. You will need to keep good records for your business but if you use online software this will make things easier for you. What’s more, as part of your contractor’s bookkeeping and accounting affairs, you must deal with the tax and VAT offices and Companies House. There may be other issues to deal with too, such as health and safety and other issues.
It is true when you are a director that you agree to adhere to certain duties each year. These encompass a wide range and are all aimed at doing your best to make the company succeed. Some of your day-to-day duties include those of a legal, statutory, and financial nature. However, a good specialist accountant will manage most of these for you, in exchange for a monthly fee. As a result, this will free up your time to focus on running you company and performing your contract work for your client.
A good accountant for contractors and UK accountancy services costs
How much does a contractor accountant cost in the UK? When we research this, most accountants charge fixed IT contractor accountant fees. You normally pay these via monthly standing order, for their annual cycle of IT contractor accountancy services work. Yet some accountants apply extra IT contractor accountant fees during the year. Others who offer accounting for IT contractors, may try charge you an extra fee when you leave later on. Therefore, you should know what your monthly charges cover for limited company accountancy services. Furthermore, it’s good to know if there’ll be any other extra IT contractor accountant fees.
When you appoint specialist contractor accountants, you may expect to pay contractor accountancy fixed fees. These could range between £60 and £150 per month and most contractor accountancy packages fall within these amounts. IT contractor accountant fees normally cover an all-inclusive type of service for your business. The cost of accountant for IT contractors includes dealing with VAT and tax offices and Companies House. Further, the IT contractor accountant fees include running a monthly payroll and filing annual statutory accounts and a company tax return. Their service also includes admin-type tasks, any advice and updating your company’s statutory records. A monthly fee should also cover your personal tax return. This includes preparing your tax return, filing this with HMRC and advising you what tax to pay and when it’s due.
The number of specialist contractor accountants has grown over recent years. Beyond doubt, the UK contracting industry is lucrative and contractors tend to have simple accounting needs. Therefore, it’s not a surprise to see many accountancy firms for contractors looking for new business. What’s more, there’s many reasons why a contractor may choose one firm over another. Searching for some contractor accountant reviews is a good place to start.
What to look for when you choose your new accountant
First thoughts
If you find an accountant for contractors, have you made checks they are genuine expert in the UK contracting industry? We advise you to look for and find a good contractor accountant specialist who will provide the best services. If you work in a sector other than IT, you may for instance search for `accountants for legal contractors’ or `oil & gas contractor accountant’. What’s more, you could look for tips from other people in an online contractor forum.
The best accountancy firms (UK) that look after contractors, should know all the ins and outs of the UK contracting scene. Indeed, the best accountants (UK) should know how UK contractor accounting works. Therefore, they can look after you from the get-go. What’s more, most accounting firms specialising in contractors can carry out the company setup process for you. Also, they can advise you right from the outset. When you have the best accountancy services (UK), they should let you know what they will do, and also let you know what you will need to do, going forward.
When you appoint a firm, you should check if you will be assigned an account manager who will look after you from day to day. It’s also key that you also choose qualified accountants. For instance, they could be Certified or Chartered Accountants.
This website contains lots of expense guides on entertaining, business clothing, personal incidental expenses, company donations, business gifts, trivial benefits and many other areas. These areas need careful research and thought to see what you can claim as expenses and save tax.
More things to think about with regard to your UK contractor accountant
From the outset, it is key to find out what your accountancy fees will cost. As in life, going for the cheap contractor accountants’ option will more than likely not be the best contractor accountant service. What’s more, it’s not always true that the more that you pay, the better IT contractor accounting service you will receive. As a result, you should look into this and do your own research here.
A good accountant will tell you how to keep and maintain your business records and how long to store the records. What’s more, they should also inform you that you can claim any pre-trading expenses. To explain further, these are expenses you will incur yourself before you set up your business. Please also make sure that your new contractor tax advisor and accountant can prepare and file your personal tax return.
When you appoint a new firm, it is good to feel happy with your specialist contractor accountant. Peace of mind comes when you have the knowledge that they’ll look after your affairs well. Indeed, this should be both for your business and for you on a personal basis. What’s more, they should also deal with all official tasks correctly and before any key deadlines.
Please also check if your new accountants have a good reputation. You can do this by looking up to see if they have contractor accountant recommendations on social media, i.e., on their LinkedIn profile.
Further areas to think about
Extra thoughts on accounting for contractors
Gone are the days where you would send all your monthly receipts for your accountant to process. Now, if you are going to be a VAT-registered business, you need an accountant that uses specialist software. This is so that you can file your VAT returns online through this software.
If your business does register for VAT, the contractor bookkeeping software must comply with Making Tax Digital. A great choice and some of the best accounting software for contractors (UK) is FreeAgent. This software is for smaller types of business such as a one-person company.
Another great place to start your search for top rated accountants for contractors is to ask your colleagues for contractor recommendations. As a result, they can advise you on how their accountant deals with their affairs. What’s more, your colleagues can also let you know if they do this on time and are precise with their work.
On the other hand, you may be new to the contracting world and do not have any colleagues to ask for help. Your recruitment agency may also try to sway you to join a large contractor accountancy firm. Indeed, there is often a ‘preferred supplier’ link between recruiters and some accounting firms for contractors. In this instance, the agent receives some ‘commission’ for every contractor that they sign up.
What to do if you would like to change your UK contractor accountant
Do you already have an accountant and would now like to change to a new one? If this is so, the best time to do this is at the start of your new financial year. We have written about the things to think about when you change your accountant.
Final thoughts
In this guide, we look at in detail what to look for in an accountant as a UK contractor or small business. When you search for the best accountant for contactors or best online accounting services (UK) for contractors, it’s best not to rush into making a choice on the spot. Please make sure you do your research on contractor accountancy firms. You can take your time to look into what deals are out there in respect of contractor UK accounting services. As some final thoughts, before you choose a new accountant, please look out for:
- An expert that will offer quality accountancy services for contractors and small business.
- The limited company accountants (UK) are good value for money on the price of their accountancy service for limited companies.
- They have good accountant recommendations about their work on social media profiles. You can also ask your contacts to help you make a good decision.
- Your best accountants for small business (UK) and contractors are a qualified firm with one of the main UK bodies in accountancy. What’s more, you could also check for contractor accountant accreditation with the IPSE who are a firm that lobby on behalf of UK contractors.
As a final thought, we hope you find a good accountant to guide you going forward. There’s lots of great tips in this guide to help you make your choice. If you take your time, you will come across a few that you can shortlist. Then, in due course, you can make a choice from there.
Link to Contractor Advice UK group on
