Tax Tips for Contractors

Google reviews
June 02, 2015

All Limited Company contractors will have to deal with tax at some point.
We have put together a list of useful tax tips to help contractors come to terms with the subject quickly.

1). Make sure you are claiming for all expenses relating to your business activity from expenditure such as a Laptop, Computer to telephone costs, insurance.

2). Keep all copies of invoices and receipts to back up your claimsHMRC recommend you should keep all business records for six years.

3). Ensure submissions of relevant paperwork are on time You should submit your accounts, VAT, RTI and annual returns on time to avoid any fines or penalties.

4). Check with your accountant whether your company would benefit from the flat rate schemeFRS allows you to pay over a percentage of your Gross invoice amount as opposed to the 20% on standard VAT.

5). Ensure that you claim for any startup costs for the company – any formation costs incurred can be claimed however no tax relief is received on these.

6). Claim for use of home as office HMRC recommends a set amount of £208 per annum, however if you excessively work from home you can use a different method which involves claiming a proportion of general household expenses (speak to your accountant).

7). Ensure you have appropriate bookkeeping software Don’t make life hard, most bookkeeping software (FreeAgent etc) will provide automated services which will save you lots of time. Also this should be able to give you an estimate of your corporation tax insuring you keep enough aside to make these payments.

8). Appoint a good accountant!We’ve all heard the phrase “a good accountant does not cost you money, they make you money”. Make sure your accountant is working for you, ensuring you are operating in the most tax efficient way.

Ready to appoint your specialist contractor accountant?

We get to know your company meaning we can advise on what expenses you should be claiming and ensuring you operate most efficiently.

If you have any questions please do not hesitate to contact us.

0161 669 4221

top tips


Recent Articles

Make sure your will is up-to-date and you have planned for IHT

Make sure your will is up-to-date and you have planned for IHT

Many of us will die without a will because it is something that we fail to get around to, often because we don’t want to think about our own demise. Around half of UK adults don’t have a will, with a third of those over 55 in this position, according to research from...

UK Export Finance doubles limit to £10m for traders

UK Export Finance doubles limit to £10m for traders

Small businesses looking to access funding to expand their exporting opportunities can now fast-track their applications with UK Export Finance, the Government’s export credit agency, and apply for twice the previous amount. The limit available now is £10m. The move...

Exporters must make declarations on a new system from March 30

Exporters must make declarations on a new system from March 30

Any trader making export declarations needs to move to a new HMRC system from March 30 this year. The CHIEF system is being fully replaced by the Customs Declaration System, and anyone who has been using the old system will now have to move across. There has been a...

Ready to join us?

Whether you’re a contractor, freelancer, or small business, Bright Ideas can help remove the burden of time-consuming and complex finances. We’ll draw on our years of knowledge and experience earned helping sole traders just like you.

When you choose us, you’ll be assigned a dedicated Account Manager who’ll provide one-on-one support that’s customised to your business. Communication is key, so we’ll always answer your questions or requests as soon as we can. In fact, we offer a same-day response guarantee for emails and calls received before 3pm.

Contact us to get started

Give us a call us or send an email today!

Looking to switch accountants?
We make the transition simple.

Does your current accountant give 1-to-1 support? Are they fast and thorough?
Slap-dash services hold businesses back, so try our experts instead.

Move to an accountancy service that goes the extra mile…

Start the conversation

Let’s make your finances Brighter

Call us Monday to Friday 9am - 5pm

0161 669 4221

Request a call back