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Contractors trading through a limited company can select to run their contractor company accounts themselves, but the administration burden is time consuming, tax laws are complicated and the price savings relatively small. So most pick specialist contractor accounting, who are geared up to supplying effective accountancy services.

But of the several a large number of firms providing accountancy solutions, which is the greatest? Here are 5 tips to help you choose:

1: Only consider specialist contractor accountants

High street accountants and big 'audit' accountancy practices mainly focus on small organizations, individual tax preparing and huge corporations. But contractors' accountancy requirements are special. So, ensure you choose a specialist contractor accountant, or an accountant having a devoted group of contractor specialists. It should have numerous years' encounter dealing primarily with contractor customers and not only local SMEs or large corporates. An excellent location to start is by checking out paid-for ads on contractor-focused websites, since only specialist accountants will advertise there.

2: Select certified and regulated accountants

Contractor accountants ought to be regulated by professional bodies and may be members of contracting sector trade organisations. They might also be accredited by contractor and freelance organisation, PCG. Make sure you select an accountant that has professionally certified accountants on its employees and industry accreditation from a recognised contracting business organisation.

3: Choose contractor accountancy solutions that suit your needs and are priced accordingly

You most likely don't want to speak to the senior companion every time you've a query, so don't pay costs as if you do. You might only require annual accounts and do a lot of the admin oneself, or you might want accountants to do everything for you. So choose an accountant that greatest suits your requirements and charges only for services you use. And do cautiously check the little print so you realize which contractor accounting solutions are integrated in the value and which are extras.

4: Ask other contractors about their very own accountants

Contractor accountants who do a good job will probably be suggested by clientele. So ask contractors about their experiences of contractor accountancy solutions and the benefits and drawbacks of each and every provider. Then pick one that gets good critiques from other contractors who're nonetheless clients. Look for online testimonials and perhaps ask queries of other contractors in online forums.

5: Select an accountant with in-depth understanding of contractor legislation

A specialist accountant will understand IR35, the Managed Services Company (MSC) legislation and Section 660. If they don't have a deep understanding of the complicated nature of those specialist laws, it could prove extremely costly to you. So pick a specialist who understands contractor tax law. And look at no cost extras - numerous accountants now offer free IR35 contract evaluations.

Contractor accountants typically charge a monthly charge, that is typically in between £60 and a number of hundred pounds per month, based on which contractor accountant you select and what services it says it'll provide.