Why a contractor accountant is a valuable addition to your company
Deciding to become a contractor is a life choice. Most contractors say they love the freedom it gives them and they enjoy being able to offer their specialist skills to different projects.
If you intend to make contracting a life-long career choice you have to decide on a set-up that is the most financially beneficial. Most contractors find that working via their own Limited Company is the most tax efficient way to work as a contractor.
When you incorporate your Limited Company, you will more than likely register yourself as a director of the company. With this directorship comes a number of responsibilities. Managing the financial affairs of the Limited Company is one of these.
There are a number of sophisticated online / cloud accountancy software packages available on the market that allow you manage the company accounts yourself. Deciding to ‘do it yourself’ may seem like an easy task and a money saving option.
However, the savings you think you may be making through not paying for the services of an accountant could actually be costing you money. The time you spend on; learning how to use the software, understanding tax rules and making yourself familiar with relevant regulation and legislation. Is time taken away from doing paid work.
A specialist contractor accountant will:
- save you time – the time you spend on doing paperwork and working on your accounts could be time spent on working and earning money
- give you advice on what forms need filling and what information needs to go on the forms
- keep you updated on the ever changing tax rules
- help you operate in the most tax efficient manner
- advise you on what taxes need paying and when. Therefore reducing your risk of receiving a penalty notice for incorrect or late payment.
We recommend reading our article ‘Looking for a match made in heaven: Tips for choosing the right accountant’ which looks at how to find the accountant that is right for your business.
Alternatively, give us a call on 020 8952 2234 and we would be delighted to discuss your requirements in further detail.