A Closer Look at Why You Should Engage a Contractor Accountant
As you take the leap into freelancing or contracting, you’ll likely ask yourself an important question: ‘should I engage an accountancy company to take care of my tax responsibilities?’ While the vast majority of contractors tend to outsource many of their accounting, tax and financial tasks to an accountant without hesitation, it’s vital that you understand why engaging an accountant, or more specifically, a contractor accountant is likely to be a smart move.
In this article, we’ll outline in simple terms how accountants for contractors make starting up, running and growing a business easier, while also ensuring that you operate tax efficiently and compliantly.
Genuine tax expertise
First thing’s first, one of the main benefits of engaging a specialist contractor accountant, as opposed to a general accountancy firm that provides services to small, medium and large businesses, is that you’re likely to receive true expertise.
Given there are a number of specific issues impacting contractors – namely the IR35 rules and IR35 reform – you’re best off working with an accountant who understands the legislation and is able to help you safeguard your tax status and make sure of your IR35 compliance.
Take QAccounting, for example. Having worked at the forefront of IR35 with our trusted partner, Qdos Contractor, since the legislation was introduced nearly 20 years ago, we offer a number of market-leading solutions – from IR35 contract assessments to representation and IR35 insurance.
Total peace of mind
At the best of times, tax is complicated. You need an in-depth understanding of a number of tax laws to ensure you’re operating within the rules and taking advantage of any opportunities.
However, as a contractor, you’ll probably feel that your time is best spent working with clients. After all, this is likely to be your core strength and it is what makes you the money. By engaging a contractor accountant to take care of the financial side of your business, you can relax knowing everything is being handled in the right way by a professional.
Smart financial planning
The role of an accountant has evolved dramatically in recent years. These days, a contractor accountant is usually able to help you with more than ‘just’ bookkeeping and run of the mill accountancy tasks.
By chatting to you about your goals – from a personal and business perspective – your accountant should be well-placed to help you achieve them. Part of a good contractor accountant’s job is to make sure you run your company (financially speaking) in a way that aligns with your aims – whether you’re hoping to secure a mortgage, invest more money into your pension or maximise your take-home pay.
The power of choice with a contractor accountant
Any accountant, whether they specialise in services designed for contractors or not, will offer a number of accounting packages to suit your budget and requirements. If you’re looking for help with your Self-Assessment Tax Return and Corporation Tax or would like an expert to sort your quarterly VAT Return, the chances are that a contractor accountant like QAccounting will provide different services for different needs.
Working for yourself is a positive career choice that millions of people in the UK are now benefiting from. If you’re thinking about starting a limited company, you’d be wise to have a plan in place for managing your tax affairs, which will free you up, offer you peace of mind and allow you to focus on the job in hand.
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 IR35 solutions, we are proud of our 9/10 customer rating. To learn more about our packages, which start from just £90 p/m + VAT and to switch to QAccounting for free, please request a callback – one of our friendly and knowledgeable accountants will be in touch.
Preparing for BREXIT
Many of our clients have received communications from HMRC over the last year to assist them to prepare for BREXIT. However as this is a complex and new area, this article is designed to further help you to assess how these changes may impact both you and your business.
Further Economic Support
On Sunday 31st October 2020 the Government announced a number of updates to existing economic support measures. The full details of these measures are reported HERE (https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced ).
Updates to the Job Support Scheme
The Government has published detailed information about the scheme HERE (https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme )