| Contractors trading via a limited company can choose | | | | You probably don't need to speak to the senior |
| to run their contractor company accounts themselves, | | | | partner every time you have a query, so don't pay |
| but the administration burden is time consuming, tax | | | | fees as if you do. You may only need annual accounts |
| laws are complex and the cost savings relatively small. | | | | and do much of the admin yourself, or you might want |
| So most choose specialist contractor accountants, | | | | accountants to do everything for you. So choose an |
| who are geared up to providing efficient accountancy | | | | accountant that best suits your needs and charges |
| services. | | | | only for services you use. And do carefully check the |
| But of the many thousands of firms offering | | | | small print so you know which contractor accountancy |
| accountancy services, which is the best? Here are | | | | services are included in the price and which are extras. |
| five tips to help you choose: | | | | 4: Ask other contractors about their own accountants |
| 1: Only consider specialist contractor accountants | | | | Contractor accountants who do a good job will be |
| High street accountants and big 'audit' accountancy | | | | recommended by clients. So ask contractors about |
| practices mostly focus on small businesses, individual | | | | their experiences of contractor accountancy services |
| tax planning and large corporations. But contractors' | | | | and the pros and cons of each provider. Then choose |
| accountancy needs are unique. So, make sure you | | | | one that gets good reviews from other contractors |
| choose a specialist contractor accountant, or an | | | | who are still clients. Look for online testimonials and |
| accountant with a dedicated team of contractor | | | | perhaps ask questions of other contractors in online |
| specialists. It should have many years' experience | | | | forums. |
| dealing mainly with contractor clients and not just local | | | | 5: Choose an accountant with in-depth knowledge of |
| SMEs or large corporates. A good place to start is by | | | | contractor legislation |
| checking out paid-for advertisements on | | | | A specialist accountant will understand IR35, the |
| contractor-focused websites, because only specialist | | | | Managed Services Company (MSC) legislation and |
| accountants will advertise there. | | | | Section 660. If they don't have a deep understanding |
| 2: Choose qualified and regulated accountants | | | | of the complex nature of these specialist laws, it could |
| Contractor accountants should be regulated by | | | | prove extremely costly to you. So choose a specialist |
| professional bodies and may be members of | | | | who understands contractor tax law. And look for |
| contracting sector trade organisations. They may also | | | | free extras - many accountants now provide free |
| be accredited by contractor and freelance | | | | IR35 contract reviews. |
| organisation, PCG. Make sure you choose an | | | | Contractor accountants usually charge a monthly fee, |
| accountant that has professionally qualified | | | | which is typically between £60 and several hundred |
| accountants on its staff and industry accreditation | | | | pounds per month, depending on which contractor |
| from a recognised contracting industry organisation. | | | | accountant you choose and what services it says it |
| 3: Choose contractor accountancy services that suit | | | | will provide. |
| your needs and are priced accordingly | | | | |