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Why Use A Specialist Accountant When Contracting?

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There are many positive reasons to decide to be a contractor, for example, a better work/life balance, greater control over their careers and to earn more. One disadvantage to working for yourself is that it can be extremely difficult to maintain and the track of your finances , and pay taxes. Many contractors opt to employ accountants who work for them to minimize the amount of administrative work they must manage and allow them to concentrate on their work.

Stay up to date with the latest legislation for the industry.

The dedicated contractor accountants are skilled and knowledgeable in providing professional advice on tax law and tax planning. An accountant for contractors will be informed about the latest legislation in the industry and any changes which are in the near future. This means that you don’t have to be concerned about missing deadlines or falling in violation of industry regulations that could lead to penalties or fines.

Specific tax legislation

A specialist contractor accountant will know how a contractor’s company should be managed and the best method to arrange the capital of the limited company in a tax-efficient manner legally. They can provide you with a tailored, proactive tax planning and assistance that is tailored to your company and your specific circumstances. They are also in a position to advise you on what expenses are eligible for reimbursement.

The rules are usually very complex in tax law particularly when it relates to contractors. IR35 law determines if the contractor is a “disguised employee” – someone who is an employee yet still benefits from the tax advantages associated with contract work.

Fixed Fees

Contractor accountants typically work on a fixed-fee basis without additional fees. They will provide you with unlimited , proactive assistance and advice in the areas of tax, finance for companies and flow of cash, based on the service level you select. A single fixed-cost every month to pay for accounting can help you manage the flow of your business’s expenses and expenditures in order to plan and control your cash flow throughout the whole year. In addition, no matter what accounting work your accountant is performing for you, whether it’s doing end-of-year tax returns or just basic accounting for business and tax preparation, the cost you pay for their services is not subject to fluctuations based on the amount of work is being performed.

Time-Saving

Every hour you are spending on your financials is an hour that you could spend doing contracts. If you do not have lots of time to spare at your disposal it is likely how managing your money take away time that you have to devote to projects or doing what you enjoy.

Support

As an independent contractor, your work schedule can differ greatly each day, based on the current contract. You’ll find that managing your financials and filing them accurately can be a time-consuming task. A contractor accountant can make it easier for you to save time, as they handle all of your payroll, invoicing and bookkeeping requirements and allow you to concentrate on the business aspect and the things you enjoy.

The accountants of contractors work with numerous contractors just like you and know that being able to assist with any issues immediately is crucial to contractors. A majority of accounts for contractors assign contractors to an account manager who is familiar with the company and has the ability to answer questions as fast as they can.

When selecting a contractor accountant, what should you be looking for in a contractor accountant?

Standard accounting packages should contain the following items:

Processing Payroll
Access to an accountant who is specialized
Assistance in all HMRC correspondence
Assistance with quarterly VAT returns for the quarter.
Bookkeeping support
Completing annual company accounting
VAT returns
Corporation tax returns
Registration for VAT, PAYE and Corporation tax

There are also packages that offer greater or lesser support based on the needs of your company.