What are the benefits of hiring a contractor accountant?

While there are numerous positive reasons why people choose to become contractors, such as a better work-life balance, more control over their career, and more wages. The disadvantage of being self-employed is that managing and keeping track of your funds, as well as paying the necessary taxes, can take a significant amount of time. Many contractors choose to utilise contractor accountants to reduce the amount of administration they have to handle, giving them more time to focus on their contract business.

Up to date on the most recent industry legislation

Contractor accountants are extremely knowledgeable and experienced in providing expert advice on legislation and tax planning. A contractor accountant will be up to date on the latest industry legislation and any changes that are anticipated to occur. As a result, you won't have to worry about missing a deadline or breaking industry regulations, which could result in a fine or penalty.

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Specific Tax Legislation

A contractor accountant will understand how a contractor's firm should be handled and the best approach to arrange the capital of a limited company in a legally tax-efficient manner. They can provide personalised proactive tax planning and guidance that is specific to your business and circumstances. They will also be able to accurately advise you on which expenses can be refunded.

When it comes to tax legislation, the requirements can be rather complex, especially when it comes to contractors. The IR35 regulation assesses whether a contractor is a 'disguised employee' — someone who is essentially an employee but nonetheless enjoys the tax benefits of contract labour. Affordable Accountant in London can help you with your payroll whether you are in or out of IR35.

Fees are fixed.

Contractor accountants typically work on a fixed fee basis with no additional fees. Depending on the level of service you select, you will receive unlimited proactive tax, business finance, and cash flow guidance and help. Having a single set fee payment for accounting each month is useful to the management of business expenses and outgoings - to estimate and manage your cash flow for the year. Furthermore, regardless of what work the accountant does for you, whether it is completing end-of-year returns or simple business accounting, the fee you pay for the service will not fluctuate based on the volume of work that is being done.

Time-Saving

Every hour you spend doing your finances is an hour you could be doing contract work. Unless you have a lot of free time, managing your finances will take time away from projects or activities you enjoy.

Support

As a contractor, your working hours may vary dramatically from day to day based on your current contract. Keeping track of your accounts and filing everything appropriately will take a lot of time. A contractor accountant will save you a lot of time by handling all of your invoicing, payroll, and bookkeeping obligations, giving you more time to focus on contracting and doing what you enjoy.

Contractor accountants have dealt with numerous contractors like yourself and realise how vital it is for contractors to have someone on hand to answer any questions they may have. Most contractor accounts will allocate contractors to their own account manager who is knowledgeable about the industry and can respond to questions as promptly as feasible.

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What should you look for when hiring a contractor accountant?

Standard accounting packages should include the following:

  • Payroll administration
  • Access to a dedicated accountant
  • Assistance with all HMRC correspondence
  • Assistance with quarterly VAT returns
  • Help with bookkeeping
  • Completing annual company accounts
  • VAT returns
  • Corporation tax returns
  • PAYE, VAT, and Corporation Tax registration

However, depending on your company's needs, there are packages available that include more or less support.

Best Accountant In London has supplied professional accountancy services to over 20,000 contractors and freelancers across the UK. As a result, you can rest certain that our team of experts will handle your business and accounting needs properly and accurately.

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