Contractor accountant

If you are a contractor working in the UK it is important that you find a good contractor accountant to handle your tax and company affairs. By working closely with such a professional you can be sure that your daily accounts are in order and that you are working in with the law.

Finding a good contractor accountant shouldn't be too difficult and you may already know somebody who is using the services of an accountancy company. Knowledge of the freelance industry is paramount when choosing a contractor accountant as they will need to be well versed in certain pieces of legislation that affect you directly as a contractor.

Try to look for a company offering a wide range of services so that you can call on them whenever you need assistance. Ensure your accountant knows the IR35 legislation inside out and that they can also assist with basic areas such as PAYE and VAT registration. Completion of your annual tax return is also an essential prerequisite as is access to advice and support whenever you need it.

One to one assistance is essential rather than dealing with a different accountant each time you need assistance. Continuity is important when dealing with your accounts otherwise mistakes and misunderstandings can occur which could work out to be very costly. Look for accountancy companies that offer a fixed fee each month so that you know exactly how much you are being charged and the services you can expect for that fee. Make sure that the package is explained in detail and that you know what to do in the event of a problem and how to contact your accountant.

The most important service your accountant can provide is to give you peace of mind that you accounts are being looked after and that you have somebody at the end of the phone if you need assistance or advice. By choosing a good contractor accountant you will save yourself time and hassle as well as getting some great advice on how to make your money go the extra mile. Financial management is essential when you are a contractor and a contractor accountant will do all the hard work for you.

Choose right contractor accountant for your business

If you are starting out as a limited company contractor, the most important advisor you are likely to have in your contracting career is likely to be your accountant. Here are ten things you should consider while selecting them -

1. Make sure that your accountant is a contractor specialist. Only accountancy firms who are well versed with the workings of a contractor business will understand the way contractors work. Specialists will understand how the payment cycle works, and the ins and outs of specific tax legislation, such as IR35, Managed Service Companies, and the Agency Workers Regulations.

2. How much does the accountant charge? Most accountants will charge a fixed monthly fee which will cover all aspects of accounting and dealing with HMRC and Companies House. Fees vary wildly between providers, so make sure you compare like with like.

3. Are there any set up fees? You may be charged an initial set up fee, to include the costs of registering your limited company with Companies House, and some initial administration work. Some firms may include these set up costs in their regular monthly fee.

4. Make sure the firm is recognized by one of the professional accountancy bodies in the UK, such as ICAEW (Chartered Accountants), or ACCA (Certified Accountants), or ICAS in Scotland.

5. Does the accountant provide any online facilities? Online contractor accountancy is rapidly growing in popularity, so make sure you know exactly how web-enabled your prospective accountant is. Do they provide full online access so you can view your accounts 24/7, or merely allow you to submit expenses and paperwork online?

6. How knowledgeable are any potential accountants of any tax rules which may affect the industry? Most important of all is knowledge of the Intermediaries Legislation (IR35). There is a massive difference in take home pay between those caught by the IR35 rules, and those who are not.

7. There are many types of contractor accountant out there, from massive 1,000+ contractor outfits, to micro accountants who deal with just a few dozen contractor clients. You may also have a personal leaning towards a firm of a certain size.

8. How much experience does the firm have? How many clients does it have? Ask if you can speak to existing clients, or ask to see testimonials from other contractors.

9. Some accountancy firms provide a host of bolt-on services, from professional indemnity and business liability insurance cover, to free IR35 contract reviews. Naturally, these services do not come cheap, so find out how much it would cost you to buy any extra services separately before signing up.

10. Perhaps the most important tip of all is to get recommendations from existing contractors. However flash the website, or reasonable the monthly fees, it is the overall service which matters, and only existing contractor clients will be able to give you the inside story.

When choosing an accountant, you won't be fully aware of how good they are until you become a client. By taking precautions beforehand, and researching the market thoroughly, you will maximize your chances of finding a suitable accountancy firm for your business.