Who do we look after?

New to contracting or freelancing?

It can be a daunting step taking the plunge into working for yourself but also an exciting one, which more and more people are taking. However, our tailored approach and proactive customer service really can make the financial bit simple and stress free.

There are a few realistic options when going into business for yourself:

  • Trade as a limited company
  • Trade as a sole trader
  • Use an umbrella company to handle your invoicing and pay

In simple terms, unless you have some specific circumstances, it is unlikely that a sole trader arrangement will afford many benefits.

In general terms, an HMRC-compliant umbrella arrangement will be easier to manage than a limited company but will be less tax-efficient and leave you with less in take home earnings, as you will be paid under the PAYE system. However, an umbrella arrangement may be the most suitable if you are only intending to freelance for a short period of time, in between permanent jobs, say for three months or less.

A limited company arrangement is generally the most tax-efficient one for individuals earning in excess of around £25,000 a year because:

  • You can receive your money as a tax-efficient mix of salary and dividends
  • You can save national insurance (without affecting your pension rights)
  • You can be on the flat rate VAT scheme, which is generally beneficial for contractors, freelancers and consultants

Therefore, if you’re expecting to earn in excess of this £25,000and you expect to be contracting for more than 3 months, we’d recommend considering a limited company option.

We’re happy to provide more advice around your specific circumstances and we would always investigate these in detail before recommending a particular course of action, so feel free to call and chat things through, or have a look at one of our free guides.

If you want to consider an umbrella provider, please click here.

If you do select a limited company, we would strongly recommend you choose a specialist contractor accountant – even if it’s not us. Whilst accounting for contractors is not rocket science or brain surgery, to get the best advice and the optimum tax benefits, as well as awareness of IR35, a knowledge of what’s important to a contractor and access to unlimited, fixed fee advice, a specialist really is the way to go.

Believe it or not, many (though of course not all) “traditional” accountants simply do not have a good understanding of what is legitimately possible in relation to optimising the tax position of small limited companies or how IR35 really works and is assessed. They also often prioritise their larger business clients, as that’s where the lion’s share of their fees will be, and they probably will not offer unlimited access by phone and email for regular support and advice, sticking with more formal, infrequent, face-to-face meeting arrangements. Accounting for self-employed individuals is a specialist area just like anything else.

Already Contracting or Freelancing?

We would strongly recommend you choose a specialist contractor accountant – even if it’s not us. Whilst accounting for contractors is not rocket science or brain surgery, to get the best advice and the optimum tax benefits, as well as awareness of IR35, a knowledge of what’s important to a contractor and access to unlimited, fixed fee advice, a specialist really is the way to go.

Believe it or not, many (though of course not all) “traditional” accountants simply do not have a good understanding of what is legitimately possible in relation to optimising the tax position of small limited companies or how IR35 really works and is assessed. They also often prioritise their larger business clients, as that’s where the lion’s share of their fees will be, and they probably will not offer unlimited access by phone and email for regular support and advice, sticking with more formal, infrequent, face-to-face meeting arrangements. Accounting for self-employed individuals is a specialist area just like anything else.

Of course, we think our fantastic personal service and our market-leading online portal make us the pick of the bunch… but we would say that.

See why we think we’re worth a try Why Us?

Our services are tailored to support contractors, freelancers, consultants, locums and other self-employed professionals in a variety of industries. Some of the common industry sectors that our clients come from are:

Whichever industry you’re in, you’ll receive the same personal attention, expert advice and hassle-free service, giving you more time to focus on what you do best.