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Contractors trading via 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 fairly small. So most select specialist contractor accountants, that are geared up to providing efficient accountancy services.

But of the several thousands of firms providing accountancy solutions, which can be the very best? Right here are 5 tips to help you select:

1: Only consider specialist contractor accountants

High street accountants and big 'audit' accountancy practices mainly concentrate on little companies, individual tax planning and big corporations. But contractors' accountancy needs are special. So, be sure you pick a specialist contractor accountant, or an accountant with a dedicated team of contractor specialists. It ought to have numerous years' expertise dealing mainly with contractor clients and not just nearby SMEs or large corporates. An excellent place to start is by checking out paid-for ads on contractor-focused websites, because only specialist accountants will promote there.

2: Pick certified and regulated accountants

Contractor accountants should be regulated by skilled bodies and could be members of contracting sector trade organisations. They may also be accredited by contractor and freelance organisation, PCG. Make sure you choose an accountant that has professionally certified accountants on its staff and business accreditation from a recognised contracting industry organisation.

3: Pick contractor accountancy services that suit your needs and are priced accordingly

You probably don't need to speak to the senior partner each time you've got a query, so never spend charges as in the event you do. You might only want annual accounts and do much of the admin oneself, or you could want accountants to do everything for you personally. So select an accountant that best suits your wants and charges only for services you use. And do carefully verify the little print so you understand which contractor accounting solutions are incorporated in the price and that are extras.

4: Ask other contractors about their very own accountants

Contractor accountants who do a great job will probably be advised by clientele. So ask contractors about their experiences of contractor accountancy solutions and the pros and cons of each and every provider. Then choose one that gets good critiques from other contractors who're nonetheless clients. Look for online testimonials and possibly ask questions of other contractors in online forums.

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

A specialist accountant will realize IR35, the Managed Services Company (MSC) legislation and Section 660. If they don't possess a deep understanding of the complicated nature of these specialist laws, it could prove very pricey to you. So pick a specialist who understands contractor tax law. And appear at no cost extras - several accountants now provide free IR35 contract reviews.

Contractor accountants generally charge a month-to-month fee, which is normally between £60 and several hundred pounds monthly, based on which contractor accountant you decide on and what services it says it will offer.