Whilst any competent accountant will be able to work for a contractor operating as a Limited Company, many contractors are actually using specialist firms to ensure they are receiving the best possible service.
Special contractor accountants are popular because they typically understand the various tax rules that are solely eligible for contractors. Although every accountant will be aware of them, a specialist will be more knowledgeable on the most important such as IR35, Managed Service Company rules and Agency Workers Regulations.
You will want your accountant to be fully aware of the IR35 rules, particularly with the new rulings coming into force in April 2020. The new off-payroll working legislation places the responsibility of determining employment status on the client rather than contractors. By having a clear understanding, your accountant will be able to help ensure your contract work falls outside IR35 and ensure you are able to demonstrate you are working as your own business.
A specialist contractor accountant will also be aware of how accounts for a limited company contractor operates; meaning they understand what types of transactions are made and when, as well as how the lifestyle of a contractor can mean gaps between payment. They will also be able to help you on the relevant VAT schemes to register in order to maximise savings. Alongside that, they can help you to structure your capital in the most tax-efficient manner.
It is worthwhile hiring an accountant as they are able to help you secure the most tax-efficient way of operating. With such a competitive market, the monthly cost to retain your own accountant is incredibly low, ranging from £60-£150. The competitiveness has also helped to increase the online accounting systems too – check out xero.com for example. Many online services link directly to your business bank account, they are able to help track your expenses and they can also submit payroll and VAT data directly to HMRC.
If you are looking to secure the perfect specialist accountant, then get in touch, at RK Accountancy and Finance we are widely regarded as the most knowledgeable and delivery focussed recruitment partner within our specialist areas of accountancy and finance recruitment, and therefore are well equipped to assist you.