Contractor accountants and IR35 help for limited company contractors

Contractor accountants: what we do

In short: if you contract through your own limited company (often called a personal service company), we prepare your company accounts and Corporation Tax return, run your director payroll, file VAT returns and complete your personal tax return. We also help you check your IR35 position and plan the best mix of salary and dividends.

IR35 in plain English

IR35, also called the off-payroll working rules, applies when you would be treated as an employee if you worked for the client directly. If a contract is inside IR35, you pay tax and National Insurance much like an employee. If it is outside IR35, your company can pay you a mix of salary and dividends.

• Medium and large clients decide your IR35 status and must give you a Status Determination Statement.
• Small clients: your own company decides the status, so you need to get it right.
• The key questions are control, substitution and mutuality of obligation. We review your contract and working practices and explain where you stand.

Inside IR35 contracts

If you are inside IR35 and paid through the client’s payroll or an agency, much of the tax is dealt with for you. We help you decide whether to keep your company open, put it into dormancy or close it, and make sure you do not pay tax twice on the same income.

Outside IR35 contracts

Your company pays Corporation Tax on its profits at 19% to 25%, and you take income as salary, dividends and pension contributions. We work out the most tax-efficient split each year and keep records that support your outside IR35 position.

IT contractors and consultants

Most of our contractor clients work in IT, engineering, project management and consulting. We understand day rates, agency contracts, travel and subsistence rules and working from home costs.