Resources – Contractor and Small Business Guides

Why an accountant who specialises in contractors? Contracting isn’t the same as a traditional business, with IR35, VAT schemes and dividend planning needing specialist support. Generic accountants may charge you more and give poorer advice. An accountant that...

Why should you care about expenses? Allowable expenses lower your Ltd company’s profits subject to corporation tax, and you’ll save 19–25% in tax. In other words, claiming £5,000 in business expenses could save you £950–£1,250 in tax. Many new contractors miss out,...

The decision to work through an umbrella or a limited company is the first step for new contractors to take. It’s also the most important one to make as your chosen setup has implications for your income, admin, and tax planning. In this guide, we’ll highlight some of...

Why Become a Contractor? Trading in your office job for a contracting career is a huge decision, but it can be life changing. As a contractor, you can charge a much higher “day rate” than an employee might earn as a salary. Contractors can earn 20–50% more than an...

What is IR35? IR35 is a tax legislation aimed at “disguised employees” who set up limited companies to work and get paid, but avoid income tax and national insurance contributions (PAYE). In the UK, if you are a contractor, you work in the public sector or engage with...

When your tax bill comes in, do you want to be caught out? This is called “bill shock”, and it’s the reaction of many a newly qualified contractor when they get their first set of accounts and discover the amount they owe in tax. When you work for yourself, you are...

Setting your day rate When you first start as a contractor it can be a bit of a stab in the dark when it comes to pricing your services. If you charge too little then you are selling yourself short. But if you go in too high, clients won’t touch you. So, it’s...

The thought of HMRC compliance may well be enough to make you curl up in a ball as a first time contractor. There’s so much to do that it’s easy to fall behind or get something wrong and be hit with fines (£100–£1,000) or even an HMRC enquiry. You want to be out there...

The Limited Company – Why Use One? For the vast majority of contractors a limited company is the obvious choice. It is more tax efficient than working as a sole trader and gives your business a more professional image. A limited company means your private and business...