A good contractor accountant

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When contracting, you may move from employment or an umbrella company into a contract role. As part of this process, there’s much to think about. One of the first things to do is to look for an accountant for contractors. However, when you search for a contractor accountant, one of the key questions is what to look for in an accountant. As a contractor, it’s good practice to put in place specialist contractor accountants from the outset. If they’re experienced in this space, a great accountant will help to give you peace of mind. Moreover, choosing a firm with fair contractor accountancy fees will help set your mind at ease. Therefore, how do I find a good accountant with the best limited company accountant fees?

Considering accounting for contractors (UK), it’s crucial to ask yourself, do I need accounting services as a contractor? The answer is yes, unless you’re capable of preparing annual statutory accounts for contractors and handling the formal company filing on your own. This task requires in-depth knowledge of accountancy. Therefore, it’s best to engage a professional firm with contractor bookkeepers and accountant specialists. A contractor specialist who offers sound accountant business advice is a smart choice.

In this guide, we’ll research how to find the best accountant for contracting professionals. Also, we’ll explore how to find the best contractor accounting services (UK). If you work in IT, you might search for the best IT contractor accountants in the UK to support your business. What’s more, if you are looking for a cheap accountant, we’ll review what to think about here later. Further, we’ll research the best contractor accounting software (UK) for your business. Therefore, as a contracting professional, let’s learn how to find a good accountant.

Initial thoughts

Many small business owners look to use some of the best and top UK accounting services. This includes sole traders, a business partnership, and a limited company director. As part of this, the best accountants in the UK will help you:

  • Support your business -this comes through day-to-day support for your accounting requirements. You should be able to reach them by email and phone; if not, they should get back to you soon.
  • Improve your cash flow—this includes advice on where you can plan and make business savings. There’s lots to consider here, and they should point out any key areas. Moreover, they should inform you where your business can make savings.
  • Deal with any accounting and tax issues, including reporting with HMRC. Your business must complete tax forms and returns, 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 and filed on time each year.

Top accountants for limited company contractors should be able to answer your questions, including any queries that arise over time. Moreover, top contractor accountants (UK) should help you be tax-efficient when working through your own company.

When you start up as a contractor, it’s quite a change from being an employee. This is because you’ll have more tasks from the outset when you’re a business owner. These include director duties and dealing with your business taxes. In this guide, we’ll research 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 can you search for the best accounting services for contractors?

What to consider first & how to find a good accountant (UK)? 

Let’s now look at how to find a good accountant for a small business. You’ll require a contractor tax accountant when you set up your own contractor company and are a new business owner. In other words, they should be able to handle the tax side of your business and your personal taxes, too. Therefore, where do you start the process of searching for an accountant for your business?

In addition to finding an accountant, you must open a business bank account and deal with other initial tasks. Regarding a bank account, we have a great guide explaining what to consider when you search for the best business account for contractors. This guide covers the new business bank account choices and how you can find the best deal.

In your search, choosing some specialist accountants is the best option. They should offer great value for money accountant services (UK). If you can do this, you’ll 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 a limited company, they’ll help you to be tax efficient. Therefore, it’s ideal to choose some accountants who specialise 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 a good backup in the future. To sum up, this is key when you run your own company in the future.

Lots of choices for a limited company accountant

There are many good accountants for small businesses in the UK. As part of your search for accountancy for contractors, there are specialist accountants and ones who don’t focus on the contracting space. If you work in IT, you can look to start your accountant for IT contractor search. As we mentioned earlier, it’s 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 business and personal tax works.

The contractor accounting services specialist should know how to make tax savings. Indeed, these are for both your business and you personally. You can do this in many ways, and it involves future planning. This will include your initial company set-up and 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 accountants, a good one will ensure your company meets all its filing duties. These filing tasks are part of your director’s duties. Therefore, an 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 ensure you don’t pay more tax than necessary.

Accountancy tips & some more initial thoughts

Please read our guide on tax tips for limited company contractors. This contains some great tips and good accountant advice. It’ll give you many good tips you should know when you have your own business. Indeed, the guide includes our latest guidance for the best tax planning ideas.

As a UK contractor with your own business, you must meet several filing dates as a company director and someone who files a Self-Assessment Tax Return. Even though your accountancy firm will help you meet all these, it’s good to know when you must file your company contractor’s accounts and other documents. What’s more, it’s key to know when to make tax payments to HMRC throughout each year.

We have guides on limited company taxes and the filing dates for official documents and tax payments. Indeed, this contractor’s website has many other good guides for UK business owners.

If you work in or near London, you’ll find various firms that can look after you, which are very costly in terms of their fees. Indeed, many UK contractors in the capital will search for the `best IT contractor accountants London’. Therefore, often, many accountants in the capital are costly. Instead of searching for the above, looking around for a good deal is wise. As part of this, you can search for someone who is an expert in the contractor space and offers a value-for-money service. Therefore, if you work in IT in London, you could start by searching for specialists in the contracting arena instead. Moreover, you can look up `specialist contractor accountants reviews’ or `contractor UK forum’ to gain more insight.

What to look for in an accountant for contractors (UK)?

First thoughts 

When you look at hiring an accountant, there’s nothing worse than taking someone on who’s not good at liaising with you. What’s more, it’s 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 is something to avoid. Your accountant should be on the ball and know how to look after you on an ongoing basis. Moreover, they should give you sound advice and help you plan accordingly. 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, they’ll find it out and let you know. As a result, they’ll guide you throughout the year and be at hand should the need arise.

For a stress-free time, you should check the current market and aim to find the best accountants (UK) to look after you and your contracting business. You could start this by searching for `accountants near me’ or `top 10 accountants for contractors.’ Moreover, you could visit a site such as the Contracting Awards or find others on the web. 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 several staff members of the same firm. Furthermore, it’s good to know if they’ll offer face-to-face meetings, should you require this.

Find the best online accountant (UK)

Some contractors will use the service of online accountants. When they do this, most of the accounting and contact with them is dealt with online. Therefore, if you’d like an online service, you could search for the best online accountants (UK). An online accountant will offer simple accounts software and expert accountancy advice. Moreover, there’ll be the option to speak directly with your UK online accountants for contractors and freelancers, should the need arise. As part of using online accounting for contractors, you should research the best online accounting software for contractors.

The best online accountants for small businesses and best accountants for contractors (UK) will make sure you don’t have to worry about most of your duties. What’s more, the best accountants for IT contractors and those who offer online accountancy services (UK) can look after you on a personal level, too. Indeed, having the best ltd company accountants will free up your time. As a result, you can focus on finding the ideal contract work and then focus on this as time progresses.

More things to watch out for 

You may have heard there’s 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 should keep good records for your business, but if you use online software, this makes things easier for you. Moreover, as part of your contractor’s bookkeeping and accounting affairs, you must deal with the tax and VAT offices and Companies House. There may also be other areas to deal with, such as health and safety issues.

It’s true that when you’re a director, you must agree to adhere to certain duties each year. These encompass a wide range and encourage you to do your best to make the company succeed. Some of your day-to-day duties include legal, statutory, and financial responsibilities. 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 your company and performing your contract work for your client.

What should you expect for UK accountancy services costs?

How much does an accountant for contracting professionals cost in the UK? Most accountancy firms charge fixed accountancy fees when we research this. You usually pay these via monthly standing order for their annual IT contractor accountancy services work cycle. However, some accountants apply extra fees during the year. Others who offer accounting for IT contractors may try to charge you an additional fee when you leave later. Therefore, you should know your monthly charges for limited company accountancy services. Furthermore, it’s good to know if there’ll be any other extra fees.

When you appoint a specialist accountancy firm for contractors, you may expect to pay fixed fees for this. These could range between £60 and £150 per month; most accountancy packages fall within these amounts. Accountancy fees for contractors typically cover an all-inclusive service for your business. The cost of accountancy includes dealing with VAT and tax offices and Companies House. Further, contractor accountant fees include running a monthly payroll and filing annual statutory accounts and a company tax return. Their service includes admin-type tasks, advice, and updating your company’s statutory records. A monthly fee may also cover your personal tax return. This includes preparing your tax return, filing it with HMRC, and advising you on what tax to pay and when it’s due.

The number of specialist accountants in the contracting market has grown over recent years. Beyond doubt, the UK contracting industry is lucrative, and contractors tend to have simple accounting needs. Therefore, it’s no surprise to see that many accountancy firms for contractors looking for new business. What’s more, there are many reasons why a contractor may choose one firm over another. Searching for some reviews for accountancy professionals in the contracting space is an excellent place to start.

What should you consider when you choose a new accountant?

First thoughts on specialist contractor accountants

If you find an accountant for contractors, have you checked that they’re a genuine expert in the UK contracting industry? We advise you to look for and find a good contractor specialist who’ll provide the best services. If you work in a sector other than IT, you may, for instance, search for `accountants for legal contractors’ or `accountant for oil & gas for contractors’. 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 outset if they meet your requirements. Moreover, most accounting firms specialising in contractors can complete the company setup process for you. When you have the best accountancy services (UK), they should let you know what they’ll do and let you know what you must do in the future.

When you appoint a firm, you should check if you’ll be assigned an account manager to look after you daily. In addition, it’s important to choose qualified accountants. For instance, they could be Certified or Chartered Accountants.

This contractor website contains many expense guides on entertainingbusiness clothingpersonal incidental expensescompany donationsbusiness giftstrivial benefits, etc. These areas require careful research and thought to determine what you can claim as expenses and save tax.

Further thoughts on contractor accountancy

Finding out what your accountancy fees will cost is vital from the outset. As in life, going for the cheaper option will more than likely not be the best accountancy service. What’s more, it’s not always true that the more you pay, the better IT contractor accounting service you’ll receive. As a result, you should investigate this and do your research here.

A good accountant will tell you how to keep and maintain your business records and how long to store them. They should also let you know you can claim any pre-trading expenses. To explain further, these are expenses you’ll incur yourself before you set up your business. In addition, please ensure your new accountancy firm and contractor tax advisor can prepare and file your personal tax return.

When you appoint a new firm, it’s good to feel happy with them. Peace of mind comes when you know they’ll take professional care of your affairs. Indeed, this should be both for your business and for you personally. Moreover, they should handle all official tasks correctly and before crucial deadlines.

Please check if your new accountants have a good reputation. You can check if they have recommendations from other contractors on social media, e.g., their LinkedIn profile.

What other areas are there to consider?

Extra thoughts on accounting for contractors

Gone are the days when you’d send all your monthly receipts for your accountant to process. Now, if you’re going to be a VAT-registered business, you require an accountant who uses specialist software. This is so 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 one of the best accounting software for contractors (UK) is FreeAgent. This software is for smaller businesses, 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. They can advise you on how their accountant deals with their affairs. Moreover, your colleagues can tell you 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 don’t have any colleagues to ask for help. Your recruitment agency may try to sway you to join a large contractor accounting firm. Indeed, there’s often a ‘preferred supplier’ link between recruiters and some accounting firms for contractors. In this instance, the agent receives some ‘commission’ for every contractor they sign up.

What action should you take if you’d like to change accountant?

Do you already have an accountant and want to change to a new one? If so, the best time to do this is at the start of your new financial year. We‘ve written about the things to consider when you change your accountant.

Final thoughts 

In this guide, we look at what to look for in an accountant as a UK contractor or small business. When you search for the best accountant for contractors or the best online accounting services (UK) for contractors, it’s best not to rush into choosing the spot. Please make sure you do your research on contractor accountancy firms. You can take your time to research what deals are out there for contractor UK accounting services. As some final thoughts, before you choose your specialist contractor accountants, please look out for the following:

  • An expert who offers quality accountancy services for contractors and small businesses.
  • Limited company accountants (UK) are good value for money in terms of the cost of their accountancy service for limited companies.
  • They’ve good accountant recommendations about their work on social media profiles. You can also ask your contacts to help you make a good decision.
  •  The best accountants for small businesses (UK) and contractors are qualified firms with one of the leading UK bodies in accountancy. Moreover, you could check for contractor accountant accreditation with the IPSE, a firm that lobbies on behalf of UK contractors.

As a final thought, we hope you find an excellent accountant to guide you in the future. This guide has lots of great tips to help you make your choice. If you take your time, you’ll find a few you can shortlist. Then, in due course, you can choose from there.

Link to Contractor Advice UK group on

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Published On: April 6th, 2024 / Categories: Accountant, featured, First timer guide /

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