Why use specialist contractor accountants?
May 03, 2017
We appreciate that life as a contractor can be quite different to regular employment. Whether contracting is a way of life in your industry, or a lifestyle choice you have made, there are usually advantages of freedom and flexibility. That said, contracting comes with challenges too.
As a contractor, you’ve got a myriad of plates to spin at any one time – fulfilling your current contract and securing your next; re-training and adding to your skillset as well as achieving a good work/life balance.
On top of that you need to find the best way to work so that you maximise your take-home pay. Then there’s the issue of your accounts and tax affairs as well as the need to ensure that you remain IR35 compliant with every contract you take on.
“There’s certainly a lot to think about, and it’s important to get every aspect right, otherwise you may miss out financially, or find yourself on the wrong side of the law.”
Keith Rennie, Practice Manager
That’s why it pays to work with a team of specialist contractor accountants like Crest Plus. Because we understand what it’s like to be a contractor, you can simply concentrate on your work and rely on us to advise on keeping your working practices compliant and your accounts and tax affairs in order.
What difference does a specialist contractor accountant make?
- We can help you maximise your take-home pay
- We keep abreast of all regulatory changes which may affect you
- We understand IR35 compliance inside out
- We have all the services you need under one roof
- We provide tailored, ongoing support throughout the year
1. We can help you maximise your take-home pay
As a specialist contractor accountancy firm, we have almost 20 years’ experience in helping contractors to maximise their take-home pay and minimise their administrative burden. We work alongside all our clients to review their working practices and advise the best approach to suit their needs, income and lifestyle.
As a contractor, you have various options as to the way you can work.
- Set up your own limited company
- Become an employee of an umbrella company like Umbrella Plus
- Work as a sole trader
- Work through agency PAYE
There are things to consider regarding each option and the right choice will depend upon your personal circumstances and preferences. We will work with you to help you decide which working option will suit you best by looking closely at:
- your personal circumstances – lifestyle choices
- your financial goals
- how much responsibility you want to take and the level of risk you are comfortable with
- whether you intend to work for yourself in the long-term and how long your contracts typically last
We will provide detailed income illustrations to help you make an informed choice. You can find out more in our Guide to Your Working Options.
2. We keep abreast of all regulatory changes which may affect you
Because we are specialist contractor accountants we always keep abreast of industry legislation to help you work in a tax efficient and compliant manner.
If there is anything which could affect how you work or the amount of tax you have to pay, we will let you know. This means you can concentrate on fulfilling your contracts without having to keep up-to-date with new or amended policies. Plus, we take away the hassle and confusion involved in determining whether and how you are affected.
3. We understand IR35 compliance inside out
IR35 legislation can be confusing but, as a contractor, it’s important to understand what IR35 is and how it may apply to you. Put simply, IR35 is HMRC’s way of identifying what it terms as ‘disguised employees’ and to ensure the correct taxes are applied.
The rules are relevant to anyone who works on a contractual basis for clients as a self-employed contractor, sole trader, freelancer or consultant. It also applies if you fulfil contracts via an intermediary such as an employment agency, your own limited company, personal service company or partnership.
The rules can be complex so when you appoint Crest Plus as your accountant, we will undertake an IR35 assessment on your behalf in relation to each of your projects. This will help you to understand your IR35 status. If IR35 rules do apply, this will have implications for the amount of tax you have to pay.
To find out more, read our IR35 Explained article.
4. We have all the services you need under one roof
Whichever working option is right for you, we can provide all the services you need to work as a contractor.
- Our Limited Company service will help you form and register your business as well as submit annual accounts to Companies House and tax returns to HMRC. We will also ensure you claim the correct expenses, pay VAT if your income is above the threshold and set the right processes in place to manage your accounts on a day-to-day/month-to-month basis.
- Our Umbrella Plus service enables you to work as an employee of Crest Plus. This means you are entitled to employee benefits such as holiday pay and the right to a pension. A key benefit of being part of an umbrella company means that your pay is handled in a timely manner.
- If you choose to work as a sole trader our specialist accountants can advise you regarding your finances and tax affairs. We can also provide ongoing advice and support to help you maximise your take-home pay.
5. We provide tailored, ongoing support throughout the year
We certainly don’t believe that contact with your accountant should be a once a year affair. So, if you deliver your contracts through your own limited company, for example, we will work alongside you to maintain your monthly accounts and iron out any issues immediately, rather than leave them to year-end. This means we are well placed to offer advice regarding the payment of salary or dividends.
Next steps
To talk to us about your working options and to find out how our team of specialist contractor accountants can help you, please get in touch on 01244 684700 or [email protected]
Read the Crest Plus Guide to Your Working Options.
Read our IR35 Explained article.