| Limited company contractors who use contractor | | | | 3: Check the paperwork that your accountant delivers |
| accountants to handle their financial affairs assume | | | | There is a line that a compliant accountant won't cross. |
| that their accountant is completely compliant and | | | | What that means is although you don't need to |
| ensures that the contractor's company manages its | | | | become a tax expert yourself, you do need to take |
| accounts within the law. | | | | responsibility for the company, tax and financial |
| But how can you check if your accountant is | | | | paperwork contractor accountants send you. Make |
| compliant? Here are five checks you can use to make | | | | sure you read through your tax return and ensure all |
| sure contractor accountants are compliant: | | | | your paperwork has been completed in full by your |
| 1: Choose an accountant that is regulated | | | | accountant and they are completing your paperwork |
| Anyone can keep books, complete tax returns and file | | | | compliantly. |
| accounts and perform those tasks on behalf of a | | | | 4: Persistent late filing and penalties |
| contractor limited company. But if you choose an | | | | Contractor accountants that file important paperwork |
| accountant that is a member of and regulated by one | | | | with HMRC and Companies House past the deadline, |
| of the four accounting professional bodies then you | | | | thus incurring penalties, are not delivering accountancy |
| know that in order to gain its membership the | | | | services compliantly. Repeated late filing should set |
| accountant must demonstrate a degree of | | | | alarm bells ringing and if the accountant is a member |
| professional competence and has to abide by the | | | | of a professional or industry body, then you should |
| rules of the professional institute and are required to | | | | complain about your accountant's performance. |
| operate compliantly. Accreditation by a contractor | | | | 5: When changing accountant ensure the transfer will |
| industry body is a good indicator of compliance as | | | | be smooth |
| these organisations rigorously audit their members or | | | | All accountants regulated by professional bodies have |
| affiliates regularly. | | | | a duty to pass on your records to their replacement if |
| 2: Choose expert contractor accountants | | | | you choose different contractor accountants. But not |
| Although contractor limited companies are small | | | | all accountants make it easy for their clients to switch. |
| businesses, they have unique features and, most | | | | Check with other contractors who have been clients |
| importantly, are subject to legislation that most other | | | | of a particular accountant, on the internet and in chat |
| small businesses are not such as IR35 and the | | | | rooms to confirm your current or future accountant |
| Managed Services Companies (MSC) legislation. If you | | | | behaves compliantly when you want to move. |
| choose a high street accountant that is not a specialist | | | | There are thousands of contractor accountants in the |
| in contractor affairs, they may not understand the | | | | UK and you can visit various websites to download |
| technicalities of the MSC legislation and undertake | | | | checklists you can use to evaluate your choice of |
| activities leaving them in breach of the rules and you | | | | contractor accountant before choosing one for your |
| facing possible penalties. | | | | contractor limited company. |