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Accountants for Contractors


Specialist Contractor Accountants

Accountants for contractors

Pearl’s many years of accounting experience means that we can provide a great specialist accounting service for contractors.
A specialist accounting service built for the modern contractor where management of your accounts and full compliance with IR35 rules and regulations are provided by Pearl’s accounting experts.
With Pearl, you’ll get a dedicated accountant who’ll know how to:

  • Maximize your take-home pay
  • File your accounts and tax returns to HMRC
  • Offer you advice on Contractor Business models
  • A choice of accounting software to make bookkeeping easier
  • Monthly Managed Accounts
  • IR35 Compliance
  • Statutory Year End Accounts
  • Self-Assessment Tax Returns

We’ll get to know you and your business so we can give a service built around your specific needs.

Moving from permanent employee to contractor

Working as a contractor has advantages over working as an employee including greater job satisfaction and more take-home pay. Note that a contractor has ‘contracts’ for jobs that are to be undertaken and contractors are bound to complete all work promised to the client under this contract. However, the contracting rules can make it incredibly complicated and specialist advice should be sought.

Contractor Business Model

The key decision when starting out as a contractor is to decide what type of business model you will follow. This is an important choice as it will affect how much tax you will eventually pay. Our expert contractor accountants can advise you on the best options.

Limited Company

A limited company gives contractors “limited” liability which means that they are not personally liable for any financial difficulties faced by the company. The company is a separate legal entity i.e. if your company goes bankrupt your personal assets will not be affected.

A limited company can claim business expenses which can include equipment, mileage allowance, business trips, stationary etc. Business expenses are deducted from the company’s profit meaning that you will end up paying less tax at the end of each tax year. Note that a Limited company also pays Corporation Tax.

Sole Trader

The easiest and most straight forward option for contractors as there is no separation between you and the business and all profits are yours. Note that clients are less likely to work with contractors who are sole traders though.

Partnership

When two or more people work together as a single company – similar to a sole trader structure.

Umbrella Company

An umbrella company deals with things like sending invoices and chasing payments making you, the contractor, an employee of this company. It is a simple solution for contractors but you will pay higher taxes due to the fact that you are an employee and not a contractor.

Advantages and Disadvantages of Contracting

Advantages of contracting?

  • Higher Pay and more take-home money
  • Lower taxes through expert advice from our specialist contractor accountants
  • Greater job satisfaction
  • Longer and more secure contracting projects
  • Greater freedom as to when and where to work
  • Being your own boss

Disadvantages of contracting?

  • Manage your own business and assume all director responsibilities
  • Finding contract work reducing job security
  • Travelling a lot more to new contracting clients
  • Staying in contract as much as possible to ensure financial security
  • Work to deadlines which can be stressful
  • No employee holiday benefits
  • IR35 compliance to ensure that all rules and regulations followed

Specialist advice on IR35 rules

Every contractor has to follow IR35 rules to be classed as a contractor, rather than be classed as an employee.
If HMRC thinks you’re still working as a permanent employee, you won’t benefit from any of the advantages being a contractor can bring.
IR35 regulations stop contractors paying lower taxes which classes them as employees of the company rather than contractors. A specialist contractor accountant will ensure that you follow all IR35 rules and regulations.
Even if you are working outside the IR35 rules, you will be forced to take all your money as a salary rather than as dividends. This is the reason why contractors pay more tax if they work outside of IR35 rules.

Expert Guidance – HMRC rules and regulations

Pearl will advise you on how to conduct business as a contractor, rather than as an employee, ensuring you get to keep all the benefits of being a contractor.
We’ll guide you through everything so you won’t have to worry about all the complicated rules and regulations ensuring HMRC compliance.

Contractor Package with Free Limited Company Formation

Our Contractor Accounting Package includes a FREE limited company formation, registering your company with PAYE, VAT and Corporation Tax with HMRC and setting up a Business Bank Account.

Insurance for Contractors

As a Contractor or Freelancer taking out an Insurance policy at the onset of starting your business is a must. This will provide you with protection and ensure that you are covered for every eventuality.

View our dedicated page on Insurance for Contractors

Get in touch for a free consultation

Want to hear more about how Pearl can help?

Schedule a meeting for a free consultation.

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FEEL AT HOME
kumon

I found Pearl accountants to be really professional.

They make me feel that I am a valued customer and to me what makes Pearl accountants unique is their helpful team of dedicated staff members.Their response is always prompt and it makes the daunting task of accounting really easy for me. Pearl Accountants is really a five star accountant company.

I would recommend them to everyone.

Saira Jafri, Kumon Hounslow Central

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020 8582 0076
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