The provision of high level knowledge services in certain sectors of the UK economy has traditionally been delivered by individuals engaging as a limited company contractor.
This structure allows both the worker and the end client to obtain flexibility, outside of the constraints of modern day UK employment law, as well as both parties obtaining tax and national insurance savings. As you will be off payroll, you will need contractor accountants to help you run this business and declare and then pay the correct taxes.
As specialist contractor accountants, we have developed a wealth of accounting and tax experience in acting for such contractors, who typically require a mix of our services such as:
- Start-up assistance.
- Using HMRC Employment Status Indicator to check your employment status for IR35/Off payroll working purposes.
- Company formation.
- Specialist tax advice in relation the “24 month” rule for ordinary commuting travel.
- Claiming scale rate subsistence and accommodation expense allowances.
- Registering for VAT, including under the flat rate scheme.
- Setting a book-keeping system up using cloud accounting software (so that we can provide support remotely).
- Preparing your annual accounts and submitting a minimum disclosure filleted set onto the public record at Companies House.
- Submitting your annual business tax returns to HMRC.
- Preparing and submitting a self assessment tax return for you personally to HMRC.
- Dissolution of the company, if your contract ends and you go back ‘on the books’.
- Annual payroll, based on a ‘minimum’ salary.
- Issuing ‘alphabet shares’ to your spouse (to facilitate tax efficient profit extraction).
- IR35 contract reviews (if not subject to off-payroll rules administered by your client).
- Remuneration planning (tax efficient mix of salary and dividends).
- Using employer pension contributions to tax efficiently extract profits and fund your retirement.
Get in touch with your local office and speak to one of our specialist contractor accountants.
Related ServicesTax Investigation Insurance Business Tax IR35 Contract Reviews Start-ups Tax Planning
As an engineering manager, I started my own consultancy business ten years ago, with my wife as co-director. Whitings guided us in setting up the day to day accounting systems, that even the smallest company has to have, and have since looked after the annual accounts and tax matters.