When you first made that big step outside of employment and into the world of contracting – you knew it was going to be a risky but rewarding move. You may have been swayed to become a contractor for the higher pay, the flexibility, or new-found professional freedom.
But now that you’re a contractor, you need to take full advantage of the financial benefits that comes with your career move.
Contractors have a tax advantage over their employee colleagues – that’s why it’s important to have a specialist contractor accountant. If you choose a non-specialist accountant, you risk losing out on the financial benefits that come with being a contractor.
In this article, we will guide you through the benefits of a contractor-friendly accountant – so you aren’t left out of pocket.
How are contractor-friendly accountants different to non-specialist accountants?
Specialist accountants are different because they understand the key areas of taxation for contractors whereas the average accountant may only be familiar with the taxation associated with normal employment. A contractor-friendly accountant can advise you on your corporation tax liability minimisation, legitimate expense reclaims, salary/dividend splits, and so on.
Accountants who deal with the finances of contractors must do more than just simply understand the most current IR35 legislation – they must also have exceptional and in-depth knowledge on all of it.
Getting your finances in order is crucial, so why would you rely on an accountant that doesn’t specialize in your area of work? Accounting for contractors is difficult which could mean a higher risk of mistakes being made in your finances. With a specialist accountant you don’t need to worry about any of this.
What are the risks of hiring a non-specialist accountant?
Your business is time consuming and at times stressful so the last thing you need is an accountant that isn’t fully aware of what it’s like to be contractor. Mistakes in doing your books cost you a lot. The probability of the average non-specialist accountant not knowing or understanding the latest regulations around contracting is high. If mistakes are made, HMRC must be contacted – this will place you at a higher risk of later investigation by the taxman.
What can a specialist contractor accountant do for me?
By now, your stomach may be churning at the idea of mistakes being made in your finances because of a lack of knowledge on behalf of your accounts. Although your concerns are rational and well-placed, you shouldn’t worry as this nightmare can be easily avoided. All the risks associated with non-specialists can be easily avoided by hiring a contractor friendly accountant.
If you are with a non-specialist accountant and you have not experienced any errors yet, then that’s great. But you shouldn’t think it’s a safe choice to stay with an accountant whose expertise lies in other areas just because mistakes haven’t occurred yet.
You can’t run a successful business without keeping the taxman and the bank manager happy. The only way you can do this is if you hire a specialist accountant. So, what are the key areas in which you will benefit by working with Sunny Accountants’ contractor team?
- Expenses: they can effectively calculate and organize your weekly or monthly expenses and claim for them in full (where allowable)
- Corporation tax: your annual corporation tax liabilities will be properly calculated and declared
- HMRC communications: let us deal with HMRC on your behalf.
- Online bookkeeping: we use the latest ‘Accounting for Contractors’ software so you can access your online portal easily to see all of your financial information
- Support: at the end of a phone line or via email.
Do you want support in your next big decision?
Don’t make your next big financial decision without carefully considering the impact it may have. It’s always best to have the support of a professional team behind you – so you know your decision is the right one.
If you would like to discuss the benefits of a contractor-friendly accountant in greater detail, contact us at Sunny accountants on 01623 559362.
For a free chat on how we can help you, please complete the contact form below and we will be in touch.