See an Evaluation of several top specialist Contractor Accountant companies further down the page.
What will an IT Contractor Accountant do for me?
There are a number of specialist Accountants for IT Contractors. It is important to have one of these Contractor Accountants as they can save you a lot of tax. We estimate that contractors with Limited companies and Accountants will pay an average of 15% in tax. Whereas someone who pays full PAYE may pay around double that depending on what they earn.
What will an IT Contractor Accountant claim for me?
There are all sorts of things they can claim like travel expenses, secretarial work, accommodation, equipment like PCs, stationery, training etc.
Can a Specialist Contractor Accountant help me if I can‘t pay my taxes?
IT Contractors tend to avoid their Accountants when they are in financial trouble. However, that is the most important time when you should keep in touch with your Accountant.
I remember one time when I had avoided my Accountant when I had financial trouble and couldn‘t pay my taxes.
When I did contact my Accountant he told me ‘You should have got in touch with me earlier. What can the taxman do? He can‘t stick you in jail and you‘ve no money to give him. He‘s only interested in people who can give him money’. This is where a specialist Accountant for IT Contractors comes in.
How Much will an IT Contractor Accountant cost me?
It has become a very competitive market nowadays. So most contractors would be paying less than £1,000 a year depending on what they use their Accountant for.
Perhaps a good figure might be £600-£800 a year. However, they will save you far more than that in tax. It has been estimated that Umbrella Company contractors pay around £10,000 a year more in tax than Limited Company contractors. A lot of that is down to what Accountants can save contractors.
Should I use an IT Contractor Accountant or an Umbrella Company?
First time contractors are faced with a dilemma when they start contracting. Should they set up a Limited Company and find a Contractor Accountant or should they use an Umbrella Company. It all depends on their IR35 status. If they are caught by IR35 then they probably want to use an Umbrella Company.
Contractor Accountants should be the choice if they are outside of IR35. Contractors should set up a Limited Company with their own Contractor Accountant.
Here is a directory of IT Contractor Accountants – Contractor Accountants Directory
Here is our review of various Umbrella Companies – Which Umbrella Company?
Which Accountants for Contractors are worth considering?
1. Hilton, Sharpe & Clarke
Hilton Sharp & Clarke are one of the few firms of chartered accountants providing a specialist, comprehensive service to contractors, as well as consultancy on all aspects of IR35 and employment status.
They serve clients throughout the UK as well as those working overseas, and it is led by a partner with experience and commitment to the IT industry.
They say “At a time when HM Revenue and Customs are becoming increasingly aggressive it is vital in our view that you use the services of an accountant who is not only a specialist in your industry but also experienced in the wider issues likely to affect you or your company.
“Above all, we aim to be friendly, informal and accessible while keeping you on the ‘˜straight and narrow‘ and saving you time and money.
“Our many existing contractor clients tell us we achieve this, and all for a competitive fixed fee”.
IT Contractor Accountants and Limited Partnerships
To see our Directory of Contractor Accountants click on IT Contractor Accountants Directory.
To use Tax Efficient Planning to get returns of 85%, or more, whilst still using a limited company click on Limited Company Solutions.