Accountants for Contractors

CTA provide comprehensive support for contractors using a limited company in the UK.

We have the experience to help you from start-up to tax planning and optimisation to make sure you maximise your take-home pay. As part of this service, we can:

• Take care of your annual accounts
• Your personal tax returns
• VAT
• Bookkeeping
• Give proactive tax planning advice

Setting Up Your Limited Company and HMRC Registration

Although it is possible to set up your own limited company, it is best practice to take a holistic approach to ensure it is set up correctly and registered with HMRC for the appropriate taxes, including self-assessment corporation tax, PAYE, and VAT.  CTA accountants can take care of the whole process for you, giving you the peace of mind that it’s done properly.

 We love helping contractors make their accounting stress-free by taking all of it off of your hands. If you would like to explore how we can help you, book a call today.

VAT Registration and Payroll Management

It is important to register your company for VAT in the correct manner. You need to consider which VAT scheme is best for you, such as:

• Standard VAT Scheme: Charged on all sales and allows for VAT recovery on purchases.
• Flat Rate VAT Scheme: Simplified accounting; you pay a fixed percentage of your sales.

Additionally, decide whether to opt for an:

• Invoice Basis: VAT is accounted for when an invoice is issued.
• Cash Basis: VAT is accounted for when payment is received.

The good news is that you do not need to figure this out on your own, as CTA has years of experience advising contractors on their VAT registration.

Another important area of contractor tax to consider is the management of your payroll and PAYE obligations. This is not just an administrative exercise; it must consider your overall tax strategy to ensure the combination of:

• PAYE Salary: Regular income subject to tax and National Insurance.
• Dividends: Tax-efficient distribution of profits.

Tax-Saving Strategies and Compliance with IR35

In our experience, many contractors are attracted by a simple online service that lacks the experience to advise on all areas of contractor taxes. Unfortunately, this can result in lost opportunities when it comes to tax-saving strategies for contractors, particularly given the rules of compliance and the minefield that is IR35.

At CTA, we combine our professional and technical knowledge with practical, hands-on experience to provide you with jargon-free, result-driven tax strategies and advice.

How much is an accountant for a contractor? 

You’re typically looking at the service starting from £129 plus VAT up to around £200 per month for a fully inclusive service that includes bookkeeping and proactive tax planning support.

Do self-employed people need an accountant? 

If your revenue is greater than £20,000 is typically best practice to have the advice and support of an accountant to ensure you are compliant with HMRC and you’re also maximising all of the relevant tax deductions.