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Contractors trading via a limited company can choose to run their contractor company accounts themselves, but the administration burden is time consuming, tax laws are complex and the price savings comparatively small. So most pick specialist contractor accounting, that are geared up to offering efficient accountancy services.

But of the several a huge number of firms providing accountancy services, which can be the best? Right here are five suggestions to help you pick:

1: Only think about specialist contractor accountants

High street accountants and huge 'audit' accountancy practices mainly concentrate on small businesses, person tax preparing and big corporations. But contractors' accountancy requirements are unique. So, ensure you pick a specialist contractor accountant, or an accountant with a committed team of contractor specialists. It must have many years' experience dealing primarily with contractor customers and not only 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 advertise there.

2: Choose certified and regulated accountants

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

3: Pick contractor accountancy solutions that suit your wants and are priced accordingly

You most likely never need to speak to the senior partner each time you've got a query, so do not spend fees as should you do. You might only need annual accounts and do significantly of the admin yourself, or you could want accountants to do every little thing for you. So choose an accountant that best suits your requirements and charges only for solutions you use. And do cautiously check the small print so you understand which contractor accounting services are included in the price and which are extras.

4: Ask other contractors about their own accountants

Contractor accountants who do an excellent job will probably be advised by customers. So ask contractors about their experiences of contractor accountancy services and the benefits and drawbacks of each provider. Then pick one that gets great evaluations from other contractors who are still customers. Look for online testimonials and maybe ask concerns of other contractors in online forums.

5: Pick an accountant with in-depth knowledge of contractor legislation

A specialist accountant will understand IR35, the Managed Services Company (MSC) legislation and Section 660. If they do not have a deep understanding of the complex nature of these specialist laws, it could prove incredibly expensive to you. So choose a specialist who understands contractor tax law. And look at no cost extras - many accountants now supply free of charge IR35 contract critiques.

Contractor accountants generally charge a month-to-month fee, which can be usually in between £60 and several hundred pounds per month, based on which contractor accountant you decide on and what solutions it says it'll supply.