When you engage a contractor accountant, it’s likely that you’re looking for a trusted expert to take over the day-to-day bookkeeping responsibilities, sort your annual accounts and to help ensure your personal and limited company’s tax compliance.
But did you know that these days, your contractor accountant may offer far more than bread and butter accounting services? Were you aware that a number of accountants have the services and resources to help you build wealth and set yourself up for life after contracting?
In this article, we’ll explore several ways that a leading contractor accountancy, such as QAccounting, can support you in protecting your best interests and expanding your financial portfolio.
A comfortable retirement
Unlike employees, limited company contractors are pretty much on their own when it comes to saving for retirement. The responsibility to pay into your pension rests on your shoulders. But given that in making pension contributions your company’s Corporation Tax bill is lowered, a contractor accountant will likely tell you that setting up a pension sooner rather than later is a no brainer. Your accountant should also be able to help with pension planning, making sure you’re doing it in the most tax-efficient way.
Seizing investment opportunities
Investing in stocks and shares – whether through your limited company or paid out of your own pocket – is one thing. Knowing where to look, how to invest tax efficiently and compliantly, along with when to make an investment, is another thing altogether. Of course, investing isn’t without its risks, but the advice of a genuine expert could make a big difference to any return you receive – which could help grow your wealth considerably.
There’s also the potentially complicated world of ISAs and personal savings accounts, which a contractor wealth management expert – who your accountant can refer you to – will be well-positioned to help you navigate.
Protecting your family
In contrast to employees, contractors don’t receive employment rights, death in service insurance being one of them. So as tends to be the case when you’re self-employed, it’s up to you to sort yourself out. Some contractor accountants will offer a life insurance policy as part of your accountancy package or as an additional service. Granted, this doesn’t technically earn you money, but it would likely prove important in protecting your loved ones if anything should happen to you. As part of this contingency planning, many accountants will also be able to put you in touch with a trusted financial advisor, with whom you can organise your assets with a view to discussing inheritance tax.
As entrepreneurs, it’s not uncommon for contractors to look at ways to expand their business interests – whether that’s growing the company and hiring employees or diversifying completely. If you’re interested in setting up a side business such as buying properties to let out, you may find that your contractor accountant can help you plan for and achieve this.
With over 20 years’ experience in supporting contractors, QAccounting is one of the UK’s leading contractor accountants, offering a range of trusted accountancy services and wealth management solutions. For more information, please request a callback – one of our friendly contractor accountants will be in touch.
The article outlines the typical tax payment dates and methods of estimating the values of tax payable for each type of tax, including VAT, PAYE, NIC, CIS, Corporation Tax, and Dividend and Personal Taxes.
Rishi Sunak has proposed a number of changes to the way that Corporation Tax will be calculated and applied. Learn more.