Specialist Contractor Accountants
Specialist Contractor Accountants will be able to tell you if you are inside IR35 or not. If you are caught by IR35 they will suggest that you contact an Umbrella Company (although many contractor accountants have an umbrella company scheme of their own).
If you are not caught be IR35 then they will set up a Limited Company (or a Personal Service Company as the Government now calls them) for you.
You would expect to pay somewhere between £500 and £1,500 a year for your specialist contractor accountant’s services and the amount depends on the level of service they give you. However, it is always best to shop around.
Whatever they charge you it will be worthwhile because every good contractor accountant will be able to save you far more in tax than they actually charge you.
They are also a very good source of advice if you get into financial trouble and can’t pay your taxes. Often Freelancers have time out of work and spend the money they have set aside for tax. Often they hide away from their accountant when they do this. However, this is the time when you need a good specialist contractor accountant most.
He or she will suggest various options. As a contractor accountant of mine once said “If you haven’t got any money they can’t take it and they’ll simply move on to the next case”. There are various options like a CVA that they can suggest for you if you really do get into trouble. Indeed, a good contractor accountant could be the best friend a contractor ever had.
To see if you are caught by IR35 take the IR35 Test here.
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