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Contractors trading via a restricted company can select to run their contractor company accounts themselves, but the administration burden is time consuming, tax laws are complicated and the cost savings comparatively little. So most pick specialist contractor accountants, who are geared up to providing efficient accountancy services.

But of the numerous a large number of firms supplying accountancy solutions, that is the greatest? Right here are five ideas to help you select:

1: Only think about specialist contractor accountants

High street accountants and huge 'audit' accountancy practices mostly concentrate on small companies, person tax planning and large corporations. But contractors' accountancy needs are special. So, be sure you pick a specialist contractor accountant, or an accountant with a dedicated group of contractor specialists. It must have many years' expertise dealing primarily with contractor customers and not only nearby SMEs or large corporates. A great place to commence 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 professional bodies and could be members of contracting sector trade organisations. They may also be accredited by contractor and freelance organisation, PCG. Be sure you choose an accountant which has professionally qualified accountants on its staff and business accreditation from a recognised contracting market organisation.

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

You almost certainly do not need to speak to the senior companion each time you have a query, so don't pay fees as should you do. You might only want annual accounts and do much of the admin yourself, or you might want accountants to do every little thing for you personally. So select an accountant that best suits your needs and charges only for solutions you use. And do carefully check the little print so you understand which contractor accounting services are incorporated in the value and which are extras.

4: Ask other contractors about their very own accountants

Contractor accountants who do a good job will likely be recommended by clientele. So ask contractors about their experiences of contractor accountancy solutions and the pros and cons of every provider. Then select a single that gets good evaluations from other contractors who are nevertheless customers. Look for online testimonials and possibly ask queries of other contractors in online forums.

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

A specialist accountant will understand IR35, the Managed Solutions Company (MSC) legislation and Section 660. If they do not have a deep understanding of the complicated nature of these specialist laws, it could prove very expensive to you. So select a specialist who understands contractor tax law. And appear for free extras - numerous accountants now supply totally free IR35 contract critiques.

Contractor accountants generally charge a month-to-month charge, which is normally between £60 and several hundred pounds per month, based on which contractor accountant you select and what solutions it says it'll provide.