Whether you're a new contractor or have been contracting for years, the idea of choosing the right contractor accountant can seem daunting. Due to the fact that each limited company's requirements are unique, there is no one-size-fits-all checklist of requirements; therefore, it makes brilliant business sense to hire an accountant who is a suitable fit for you. Not only will they be able to assist you with initial set-up tasks such as incorporating your limited company, but they will also be able to advise you on a variety of complex financial issues, thereby ensuring that you retain as much of your hard-earned revenue as possible.
You'll have enough on your plate to run your business without worrying about missing a tax deadline, ensuring that your tax submission is accurate, or you willnot miss out on any opportunity and avail maximum tax deductions, which help reduce your business tax liability.
- How can you benefit from the services of a contractor accountant?
- How to choose a specialist contractor accountant?
How can you benefit fromthe services of a contractor accountant?
Before we discuss finding a specialist contractor accountant, its important to understand how a contractor accountant can help you. The top contractor accountant will handle all of your tax paperwork and work with you to maximise your tax savings. Additionally, the top contractor accountants in the UK will guide you through the UK's complex rules, such as IR35, so that you can focus on your business without worrying about what would happen if HMRC conducted an investigation.
Numerous key tasks that are performed on your behalf by the contractor accountant are as follows –
- Payroll setup and processing.
- Incorporating our limited company.
- VAT registration and return filing.
- Help you with the filing of your Confirmation Statements.
- Completing your company's annual accounts and submitting them to Companies House and HMRC.
- Managing ongoing contracting paperwork.
- Providing tax and retirement planning advice.
- Personal tax return preparation.
- Providing professional references when you need to apply for a mortgage.
The activities listed above are only a few things; there are many dozens of smaller tasks that a specialist contractor accountant may assist you with.
How to choose a specialist contractor accountant?
You must take the following steps to choose a specialist contractor accountant –
Whether specialised in the contractor market– When you start searching for the best accountant, you must analyse whether they are specialised in the contractor market. Often, it looks as if the UK has more accounting firms than contractors. If, on the other hand, accountants do not specialise in the contractor industry, you are likely to pay the price for a substandard service. A general practice or high street accountant is required to deal with various types of clients, which means they have less experience with personal, limited companies.
A dedicated contractor accountant like DNS have extensive experience dealing with customers like you and provide you with the best advice possible.
Choosing an accountant who understands contractors needs– Select an accountant who is aware of the needs of contractors. Determine if the accountant is an expert in contractor affairs and is familiar with critical problems such as IR35. The majority of high street accountants lacks this knowledge and should be avoided, even if they are less expensive.
Check qualifications of each accountant- Determine whether the accountant is a member of a professional accounting body, such as the Association of Chartered Certified Accountants (ACCA) or the Institute of Chartered Accountants in England and Wales. If they are not, kindly ignore them and move on.
Get accountant references from other contractors– Before deciding on an accountant, speak with other contractors and ask about their experiences with other accounting services. References are frequently one of the most acceptable ways to determine which accountant is the best.
Check what’s included in the price– While choosing an accountant, you must verify how many services you need from your contractor accountant and what price they are charging.
Check what’s not included– Occasionally, accountants fail to specify that the price does not include everything. As a result, a contractor may be surprised by an additional bill, such as one for personal tax returns. Contractors should verify that the pricing includes everything they believe is necessary and negotiate to get whatever they believe is not included.
In-depth knowledge of IR35– A specialist contractor accountant will also have in-depth knowledge of IR35 and how to plan tax and budget in accordance with the IR35 tax legislation. Ascertain that the accountant is genuinely knowledgeable with IR35 and has not simply added it to their list of services to achieve extra business.
Know when it’s best to change your accountant– A good contractor accountant will pay for themselves through time and money savings associated with proper tax planning and risk management associated with legislation such as IR35. If you believe they are not doing an adequate job, you should start searching for another accountant. If a contractor decides to change the accountant, the previous accountant is required to transfer the contractors records to the new accountant. Changing contractor accountants can be a problem, but if the contractor is switching from an underperforming accountant to another one who is highly recommended, the contractor will ultimately save time and money.
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