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Accountant for Contractors

Vidit Agarwal   15 May, 2020

Contractor Accountants

At DNS Accountants, our team of contractor accountants takes the load and hard work of accounting out of the hands of the contractors and provides them with quality accountancy services, helping them focus on growing their company and maximizing profits.

Accountants for Contractors

Why Choose DNS as your Specialist contractor accountant in the UK?

DNS Accountants has a special package for Contractors whereby they would never miss any expense claim or allowance and will be fully informed of how to maximize claims and reduce taxes.

  • Ongoing bookkeeping and access to online accounting portal
  • Managing general communication and queries with HM Revenue and Customs (HMRC)
  • Limited company formation at Companies House or business set up.
  • Assistance with opening a business bank account
  • Constant tax advice all through the year
  • Completion of personal taxation requirements including tax returns.
  • Computation and recommendation on Value Added Tax (VAT) returns and payments.

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Contractor Accountant- Choosing the Best Accountants for Contractors

  • More Services, fewer Hassles – Our team of accountants for IT contractors is very passionate about delivering what has been committed to the clients. Our best contractor accountants in the UK always give the best advice, explain things clearly and set the whole thing up to run in a streamlined, hassle-free way.
  • Earn More, pay less tax – Our specialist accountants for IT contractors in the UK ensures that, through proper tax guidance and planning, our clients keep as much of their well-merited cash as possible and by no means pay more tax than you need to. We will set up the business and compensation structure in the most tax-efficient way possible, discuss IR35 and proactively advise on an ongoing basis in response to changes in circumstances or HMRC rules.
  • More business focus, less paperwork – Our cloud-based one-stop contractor accounting solution has already generated interest in the professional accounting community and with its quick and easy to use features. We can give clients a 24x7x365 real-time view of expenses, tax liabilities and the available current assets. An accountant for contractor will manage and monitor the accounts and ensure that all the client issues, whether PAYE or HMRC or VAT are addressed accurately, removing the administrative burden of running a company.
  • Work flow management – Important dates and dues are communicated well in advance. We will manage all the filing activities hence, no tax deadlines will ever be missed. Our certified accountants for contractors bring a fresh viewpoint to complex tax obligation issues, and help create a straight forward, transparent approach and make sure the contractors understand the tax implications.

Who is a Contractor?

A self-employed contractor individual works for clients for a set duration or until a specific task is completed. Usually, contractors are paid on either an hourly basis or a fixed fee for the contract. The rates are generally considerably higher than they would be for an equivalent position as a permanent employee. A contractor enjoys the best of both worlds: flexibility to work and to pick assignments that appeal to them.

Our team of specialist IT contractor accountants can help them understand the kind of earnings they can enjoy as a contractor and compare it to other ways of working to help make a financially sound decision.

Why work as a Contractor?

Many people choose to practice contracting over permanent employment because of the monetary benefits of working as a contractor and the increased flexibility. These advantages carry with themselves some additional responsibilities that an individual will have to meet if they consider moving to contracting from permanent employment.

Limited Company

Higher take, home pay - Usually, a contractor takes home around 75% - 80% of the contract amount by working through their own limited company. There is a certain amount of paperwork involved, usually about 10 - 15 minutes per month. Our specialist accountants for IT contractors can help the contractor with this. A contractor can claim a wider range of expenses. Greater opportunity for tax planning than PAYE Umbrella. A contractor cal also have access to the Flat Rate VAT scheme.

It is worth considering having an own limited company if contracting will be for at least 12 months. It can be costly if a contractor only takes short term projects. A contractor has complete control of the financial affairs as there is no third-party administrator.

Umbrella Company

A contractor enters the timesheet and expense details and waits to be paid. Umbrella Company pays the contractor. A contractor will receive a salary that is subject to full pay-as-you-earn (PAYE).

In the Umbrella Company, a contractor will be treated as a permanent staff member. Tax and National Insurance (NI) is deducted before receiving the salary. Hence, no further taxes to pay.

Working through an Umbrella company is ideal for short term contracts.

It is worth considering having an own limited company if contracting will be for at least 12 months. It can be costly if a contractor only takes short term projects. It is considered Ideal for contracts earning less than £25000 per year.

Few of our valuable Contractors

  • Digital and associate marketing consultants
  • Film, radio and video producers
  • Graphic designers
  • Management consultants
  • Marketing and PR consultants
  • Project Managers
  • Musicians
  • Translators
  • Web designers and developers

Frequently Asked Questions

An IT contractor accountant is a professional who is responsible for maintaining and interpreting the financial records of contractors.

No, Contractor Accountants didn’t have fixed fee Accountancy Packages. The per month fees for small businesses accounting for contractors services can be as low as £60 or as high as £250 depending on turnover, depth of service and business place.

With DNS services, you get a dedicated account manager who will be responsible for managing all areas of your business. This saves you time as you don’t have to speak to different people in various departments. Our account manager will be your single point of contact for any query and help you assign a dedicated accountant who will be accountable for all your accountancy services and drive your business towards growth.

There are multiple benefits of limited company owners to use accountants for other duties, including company formation, company registration with all the relevant tax departments – Self-assessment tax, Corporation Tax, VAT, PAYE, etc. A piece of advice from a dedicated accountant is highly recommended. Get in touch with DNS accountants now.

In case you are a self-employed person and caught by IR35, You need to pay income tax and National Insurance Contributions (NICs). If you are a legitimate contractor, freelancer, interim, or consultant operating your own firm, you should have no reason to worry about IR35. DNS provides Full IR35 Contract Review assessing both your contract and working practises, allowing you to remain fully compliant and offer relevant documentation. Additionally, it demonstrates to HMRC that you have taken reasonable steps to determine if your status falls outside IR35.

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