Advice to help you find the right match
Choosing the right accountant is essential if you are a contractor working on assignments outside IR35 and decide to work through your limited company. A good contractor accountant will have in-depth knowledge of the contract market and the required tax obligations. They can also offer proactive tax planning and advice tailored to your business and goals.
Whether you are a seasoned contractor or are just starting out, we suggest you use an experienced and trustworthy contractor accountant. They can help you set up your limited company (if required), inform you of the latest changes in legislation and minimise the administrative responsibility associated with being a director of a limited company.
Checklist for searching for a new contractor accountant
If you are about to set up a limited company or are looking to switch from your current provider, it’s worth asking the following questions before making your decision.
Are they specialist contractor accountants?
Appointing a specialist contractor accountant means they will be familiar with all relevant industry legislation, up-to-date with any changes, and knowledgeable about how contractors work. You can feel reassured that you are getting the right tax advice and important factors are not being overlooked.
Are they experienced?
It is always worth considering the accountant’s experience, particularly within the contractor industry or the industry in which your limited company operates. The financial requirements of different sectors vary, and an accountant with knowledge of your industry will be more qualified to handle your financial requirements.
Are they accredited by a respected industry body?
Respected industry bodies, such as the Freelancer & Contractor Services Association (FCSA), are dedicated to ensuring the supply chain of temporary workers is compliant with UK tax law and HMRC regulations. Using an FCSA-accredited accountant will ensure you are using a knowledgeable contractor accountant who will provide a trustworthy and compliant accountancy service.
Do they have good reviews online?
This goes for any service provider, but it is essential for your business and finances. Take the time to review the feedback left on platforms such as Google or Trustpilot to gain a better understanding of other contractors’ first-hand experience of the accountant.
Are they proactive?
A good accountant doesn’t just complete paperwork at the right time of year; they will also be proactive in providing tailored tax planning and advice for your business and adapting to any legislation changes that could affect it.
Do they offer bookkeeping software that caters to contractors?
Some accountants offer bookkeeping software as part of their service, and some charge an additional fee for software use. Some great bookkeeping software is available, and if you are interested in it, always make sure it factors in the specific needs and legislation requirements of a limited company contractor.
Appoint a dedicated contractor accountant
As a limited company director, you are personally responsible for filing your accounts, submitting tax returns, keeping company records and reporting any changes. Staying on top of your tax obligations can be time-consuming and daunting – especially if you are new to contracting. Many contractors appoint a dedicated contractor accountant to ensure that documentation is filed correctly and on time with HMRC and to look after their company accounts.
Our sister company, Churchill Knight & Associates Ltd, has been an industry-leading provider of contractor accountancy since 1998. Their FCSA-accredited accountancy service is suitable for contractors in any industry at any stage of their career. To learn more about Churchill Knight & Associates Ltd’s accountancy service, please click here to visit their website.
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