There are many positive factors that lead people to choose to work as a contractor, like a better work-life balance, greater control over their career , and to earn more. One disadvantage to working for yourself is that it is difficult to keep the track of your financials and pay taxes. Many contractors opt to employ accountants who work for them to minimize the amount of administrative work they must manage which allows them to concentrate on the work they contract.
Current on the most recent industry legislation
The dedicated contractor accountants are skilled and knowledgeable in providing the most accurate advice regarding taxes and legislation. A contractor accountant is knowledgeable about the most recent legislation in the industry and any changes which are forthcoming. This means that you don’t have to be concerned about missing deadlines or committing a violation of the industry’s regulations, which could lead to penalties or fines.
Specific tax legislation
A specialist contractor accountant will know how a contractor’s company should be managed and the best method to arrange the capital of an LLC in a tax-efficient manner legally. They will provide tailored tax planning and guidance that is tailored to your company and the circumstances you face. They can also be competent to inform you about the expenses that can be refunded.
The rules are often very complex in tax law particularly when it relates to contractors. IR35 laws determine if the contractor is a “disguised employee” – someone who is an employee, but is still able to enjoy the tax advantages of contract work.
Fixed Fees
Contractor accountants generally work on a fixed-fee basis without additional fees. You’ll receive all-inclusive, proactive advice and support in the areas of tax, finance for companies and flow of cash, based on the type of service you select. Paying a fixed monthly per month for accounting will help in the management of outgoings and expenses for business to forecast and manage your cash flow throughout the entire year. In addition, no matter what tasks the accountant performs for you, whether they’re doing end-of-year tax returns or just basic accounting for your business and tax preparation, the cost you pay for their services is not subject to fluctuations based on the amount of work that is being completed.
Time-Saving
Every hour you are spending on your financials is an hour you could spend doing freelance work. If you don’t have a lot of time to spare at your disposal it is likely the process of managing finances take away time that you can devote to projects or doing what you enjoy.
Support
As an independent contractor, your work hours can vary significantly from day to day, based on the current contract. It is likely that managing your financials and filing them properly can take a lot of time. A contractor accountant can help you save a lot of time, as they manage all your payroll, invoicing and bookkeeping requirements which will allow you to concentrate on the business aspect and things you love.
The accountants of contractors work with a variety of contractors similar to you. They understand that being able to respond quickly to any questions is essential for contractors. A majority of accounts for contractors assign contractors to an account manager who is familiar with the company and has the ability to answer questions as fast as is possible.
When you are choosing contractor accountants what should you be looking for in a contractor accountant?
Standard accountancy packages should include the following items:
Processing Payroll
Access to an accountant who is specialized
Assistance in all HMRC correspondence
Assistance with quarterly VAT returns for the quarter.
Bookkeeping support
Completing annual company accounting
VAT returns
Corporation tax returns
Registration for VAT, PAYE and Corporation tax
There are also packages that offer greater or lesser support based on your business’s needs.
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