Invest in a specialist accountant for contractors
Starting out as a contractor can be an exciting time, but there are a few things worth considering before you make the choice. To ensure that you don’t stumble straight away and get caught out by complex legislation, it is worth investing in specialist contractor accounting services to get your business up and running.
Here at Approved Accounting in Havant we have helped many first-time contractors make the step to starting their own company and provide accountancy packages especially for contractors, freelancers and consultants across Hampshire, the South and London.
Understanding contractor legislation
At Approved Accounting we can answer your questions and guide you on the most tax efficient way to operate your company. From how much pay to take home to the drawing of dividends, claiming of expenses, registering for the Construction Industry Scheme, tax planning and long-term strategy; our extensive knowledge on contractor specific legislation makes us the perfect partner.
A beginner’s guide to contracting
There are many benefits to leaving permanent employment and setting up on your own. Beyond the obvious advantages of flexible working and making your own business decisions, the chances are that as a contractor you are likely to earn considerably more than permanent workers. And, with more employers seeing the benefits of hiring independent contractors too, there are many opportunities out there.
At the same time however, there are risks to consider as well. As a freelance worker, you do not enjoy the same rights as employees. For example, there is no entitlement to redundancy pay, no paid holiday, and no guarantee of work beyond the period of your contract. This is why weighing up the pros and the cons is very important, and the best solution is not the same for everyone.
If you do choose the freelance route, it is essential to consider the terms of every contract you undertake, and with some very complex legislation (primarily IR35), it is important that you seek expert advice to help you with this. When you set up your own Limited Company, you should remember that you become responsible for your own taxes, cashflow and expenses.
Contractor accounting services
Approved Accounting can guide you through the tax implications and financial impact of each contract you are offered, helping you mitigate risks against contractor legislation and ensure you are engaged on a genuinely ‘self employed’ basis to ensure you are working under legally compliant arrangements, and do not fall foul of the complex rules on ‘employment status’.
Below is a list of just some of the benefits that we can bring to ensure that you run a successful business: –
- Help you set up as a Limited Company and deal with all HMRC and Companies House administration.
- Set you up as part of the Construction Industry Scheme (CIS) – where applicable.
- Assist you in maintaining online accounting records which will be compliant with the forthcoming ‘Making Tax Digital (MTD) regime.
- Submit your corporate tax returns to HMRC
- Draw up directors’ self-assessment returns.
- Provide tax advice and recommendations for long term planning.
- Advise you on dividend payments to ensure tax efficiency.
- Ensure that your Invoicing/ledger management is in order at all times.
- Run your monthly PAYE returns and submit data to HMRC.
- Process your quarterly VAT returns.
- Undertake National Statistics reporting where applicable.
- Manage your Construction Industry returns – where applicable.
- Remind you of important deadlines.
- Answer any day-day questions you may have relating to your contractor tax affairs.
Approved Accounting – making finance simple
Paperwork will always have a place in business, but in terms of accounting, it is not the way forward! With plans to move VAT to a new digital record keeping system in 2019, it is time to start thinking about moving your finances online if you have not already done so. Thanks to use of our secure, online accounting packages, we offer contractors total control over their finances no matter where they are working or whatever the time of day.
And, as Xero Gold Partners, we can show you the most efficient ways to get the most out of its applications and others. From automatic invoicing to managing your expenses, payments and cashflow, it’s all stored in one place.
We appreciate that financial terminology can often be difficult to follow, so we promise to always say it simply and cut the jargon wherever possible. Always at the end of a phone or happy to meet face to face, we will ensure that our dedicated team of accountants always make your best business and personal financial interests our top priority.
Changes on the way in the contracting industry
There are changes afoot to reform ‘employment status’ legislation (known as IR35), which as a contractor will impact how you run your business. At Approved Accounting we will ensure that you are kept up-to-date with the latest information and can advise you on the best ways to operate and protect your company.
We do not expect large companies’ use of contractors to diminish significantly when the rules change, because there will always be a demand for highly-skilled and flexible pool of resources to call on when needed. In some ways the introduction of new rules (to put the onus on the engaging company to deduct tax/NI at the point of payment) may make administration easier for contractors.
Cost effective contractor accounting packages
At Approved Accounting we offer economical financial solutions based around your contracting needs and budget. We offer fixed monthly accounting plans, bespoke to your business needs, and promise that there will be no hidden costs EVER.
If you would like to know more about how contracting works, the legislation that need to be followed or just want advice about tax generally, then please contact us today for information on our contractor accounting services.