Best contractor accountants

First, the creator of this resourceful contractor website is a Contractor Accountant specialist and has been so for many years. Indeed, we offer contractor accounting services for limited company contractors and freelancers across the UK. Moreover, we provide some of the best contractor accountants (UK) services and look after clients in various industries. Therefore, are you on the search for contractor accounting services (UK) for the first time? On the other hand, are you looking to leave your current firm of accountants? If either applies, there are various aspects to consider before looking for a new accountant for contractor services. Therefore, if you’re looking for the best accounting services for contractors, please read on.

In the UK, there are thousands of accountancy firms, as well as many solo practitioners. Therefore, when you search for the best limited company accountants for contractors in the UK, you’ll find plenty of choices. However, it’s key to take your time and do your own research when you search for a new accountancy professional to look after you.

You should search for the best IT contractor accountants if you’re running a limited company and work in IT as many contractors do. However, when you look for an accountant for an IT contractor, what else should you consider as part of your accounting service (UK)?

Contractor accountants

Online accounting

In 2024, Making Tax Digital (MTD) is now firmly on the scene. Therefore, many UK contractors who are VAT registered have to maintain their company’s records on a digital system online. This type of system is accounting software on a digital platform, which you can access via the internet. As a result, with the new MTD rules in place, there is a growing number of digital systems out there.

FreeAgent, Sage, Xero, and Quickbooks are the more established ones to choose from regarding online software. However, when you look for the best specialist accountants for contractors, they should be familiar with how these online services work. Moreover, FreeAgent is suitable for most small businesses, including owners of contractor limited companies. Many contracting professionals in the UK regard FreeAgent as the best online accounting software for contractors. Furthermore, the best limited company accountants know how this software works. Therefore, the FreeAgent system works very well for most of our existing clients.

Find the best limited company contractor accounting services

What should you consider when searching for accounting for contractors?

When you work through an umbrella company, you’ll look after all the admin-type tasks. However, when you work for yourself, you may require a dedicated accountancy professional to help guide you.

Many accountancy firms are out there, including those on the high street and online. What’s more, there are specialist contractor accountants (UK) who are experts in the contracting arena. It’s key to make sure your accountant is highly qualified in their chosen field and is one of the best accountants for contractors (UK). Furthermore, the main recognised body for most accountants is the Institute of Chartered Accountants in England and Wales (ICAEW).

If you appoint a new accountancy firm, it’s better to have a personal accountant dedicated to looking after you daily. Indeed, good customer service with a dedicated accountant is better than being dealt with by different staff members. Furthermore, your accountant can look after you each day and deal with any issues as they arise. As part of appointing an accountancy firm, and if you already have your own HMRC Business Tax account, you should authorise HMRC to deal with them. As part of this, you can authorise your agent for specific tax services through your account.

The best contractor accountant will provide limited company accounting services for contractors and specialise in this area to give you peace of mind. As a result, they’ll provide excellent UK accounting services for contractors. In addition, they’ll provide news and updates whenever something new or important arises. Furthermore, they’ll contact you with news regarding any significant changes that affect you. Also, face-to-face meetings should be available if the need arises.

When is the best time to change contractor accountants (UK)?

Are you now taking the time to look for a new contractor accountant or small business accountant? Alternatively, are you thinking of how to change your accountant? If your current firm isn’t satisfactory and left unchanged, their service will unlikely improve. If you want to change to the best accountant for contractors, the best time to do this is at the start of a new financial year. What’s more, we’ve written a couple of guides on this, which are on this site.

Alternatively, if you’re looking to appoint a specialist accountancy professional who provides a personal service for UK contractors, we are happy to help. We’ll help you form a limited company and guide you going forward. In addition, we’ll help you maximise your take-home pay and notify you of tax-saving ideas.

You may be in the IT industry, as many contractors in the UK are. Therefore, there are many IT contractor accountants out there to choose from. What’s more, most of these accountants for IT contractors are good, and we offer an excellent and competitive service. Furthermore, the best accountancy firms usually offer accountancy packages, which include a fixed fee. This helps you spread the cost of your services over a calendar year.

Accountancy charges

It’s key to remember that Contractor Advice UK charges are very competitive. What’s more, they are excellent value for money.

The monthly charges for an accountancy package for a UK contractor are:

The monthly charges for accountancy services for a UK contractor are:
To cover all time over the course of a year £90.00
FreeAgent licence fee £17.00
Sub-total £107.00
VAT £21.40
Total £128.40
The monthly charge for contractor accounting services is £90.00. To summarise, this is the annual total to cover all the work for you and your company, divided by twelve to arrive at the monthly amount.
Contractor accountants

Contractor accountants’ top tips

  • Are you registering a company for the first time or considering changing your contractor accountants? One key thing to do is set up a Business Tax account with HM Revenue & Customs. Indeed, this makes appointing us as agents for your company taxes (Corporation Tax, VAT and PAYE/NIC) much quicker (days, not weeks). Moreover, once your business is registered, you can add each tax service (where relevant) to your account. Therefore, please use this link to register as a limited company or other organisation.

  • When you open a business bank account with Natwest, RBS or Mettle, the bank will cover your FreeAgent licence fee. Therefore, the above monthly charges would be £90.00 + VAT £18.00 = £108.00.

  • Please read our guide to UK contracting for UK contractors in all industries. Many of the tips here can also apply to other UK businesses.

  • We recommend you read our guide to running your company too.

  • Please read our latest guide on tax tips.

What our contractor accountants fees include

Our accountancy services for UK contractors cover the annual reporting cycle to the authorities. Therefore, these services will include:

  • We check your quarterly VAT return figures before we file these. In addition, we advise you on what VAT to pay to the VAT office.

  • We prepare the monthly payroll and file the RTI (Real Time Information) with HMRC. Once processed, your payslips will appear on FreeAgent automatically. In addition, we advise you quarterly on what to pay to HMRC for PAYE/NIC.

  • Completion of the annual company accounts preparation. This contractor accounts work also includes Corporation Tax calculations, a Corporation Tax return, and the online filing of these with Companies House and HMRC.

  • We complete any admin-type work. Therefore, this work includes preparing minutes, making changes with Companies House, forwarding mail, etc.

  • We prepare your and your partner’s personal tax returns. In addition, we file these online with HMRC.

  • As contractor accountants, we consider tax planning for you and your company.

  • As part of the contractor accounting services, we will answer any questions as and when these arise. However, an additional fee may apply for our time if the query is complicated and involves detailed research.

Contractor accountants
Contractor accountants

Final Thoughts

As you can see, there are many areas to consider when looking for the best contractor accountant, particularly accounting services for contractors. What is more, if you’re now searching for the best contractor accountants to look after your accounts and tax affairs in future or would like to know more, please get in touch. You can send a message using the contact form at the bottom of the home page.

Accounting Service
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Frequently Asked Questions

Accounting services is the process of recording financial transactions that pertain to a business. The accounting process includes summarising, analysing and eventually reporting all of the transactions to the UK tax and reporting authorities. If you are a contractor, a good starting point is to choose good contractor accountants as they will have the specialist knowledge that you are unlikely to find in an accountant on the high street.
Contractor accounting means looking after a contractor in terms of their accounting and tax needs.

A dedicated contractor accountant will take the time to understand how a contractor’s business is run. In addition, they will also look at how the company is set up and find the best way for the company to operate in a legally tax-efficient way. They can also advise the business on future tax planning depending on your circumstances. An accountant that offers the best contractor accounting services would cover all of the above areas of consideration.