Running a limited company brings more paperwork than working as a sole trader, and contractors have extra rules such as IR35 to think about. As a contractor accountant in Uxbridge, Ken Accounting looks after your company’s accounts and tax, and your own, for one fixed fee. We are qualified, IFA-regulated accountants and have worked with company directors across West London since 2007.
Everything in one fixed fee
A limited company has filing deadlines with both Companies House and HMRC, and the director usually has a personal tax return as well. We bring all of this together, so you have one accountant, one fee and one set of reminders.
Our fixed fee can cover:
- Year-end accounts filed with Companies House
- Corporation tax return (CT600) filed with HMRC
- Payroll for you and any staff, including RTI submissions
- VAT returns under Making Tax Digital, if you are registered
- Your personal self assessment tax return as a director
- Confirmation statement to keep the public register up to date
[TODO: Gaurav to confirm what is included in the standard fixed fee and price guidance]
The fee depends mainly on your turnover, how many transactions you have, whether you are VAT registered, and how many people are on the payroll. We agree it before we start, after a free first conversation.
We chase you before each deadline, not the other way round. If you use Xero, we can work directly from your records and keep an eye on things through the year. For more detail, see our limited company accounts service.
IR35 and contractors
If you work through your own limited company for clients, the off-payroll working rules, often called IR35, may apply. They are designed for situations where you would be treated as an employee of the client if you were engaged directly.
Who decides your status depends on the client:
- Medium and large private sector clients, and public sector clients. In most cases the client decides whether the rules apply and should give you a status determination statement (SDS) explaining its reasons.
- Small private sector clients. Your own company is responsible for deciding your employment status for tax.
These rules have applied to the private sector since 6 April 2021. If a contract is inside IR35, the fee-payer deducts tax and National Insurance before paying your company, which changes how much you can take out and how.
We can help you understand a status determination, work out what it means for your income, and make sure your company’s accounts and payroll reflect it correctly. Where you are working with small clients, we can talk through the factors you need to consider.
Salary, dividends and pensions
As a director and shareholder, you can usually take money out of your company in more than one way. Getting the balance right can make a real difference to your overall tax bill.
- Salary is paid through payroll and is a cost to the company for corporation tax.
- Dividends are paid out of profits after corporation tax, and only when the company has enough retained profits to pay them.
- Employer pension contributions paid by the company can be a tax-efficient way to save for the future.
The right mix depends on your profits, your other income, your plans and the latest tax rates. We review it with you each year and explain the options in plain English. If you are still trading as a sole trader and wondering whether to incorporate, see our page for sole traders.
Switching accountant is simple
Many directors stay with an accountant they are not happy with because switching sounds like hard work. It is easier than you might think.
- 1. Free consultation. We talk through your company, your deadlines and what you need, and agree a fixed fee.
- 2. You appoint us. We send you an engagement letter and the anti-money laundering checks we are required to carry out.
- 3. We contact your old accountant. We ask them for the information we need, so you do not have to chase it yourself.
- 4. We take it from there. We set up your deadlines, agree access to your records and become HMRC’s point of contact as your agent.
You can switch at any time of year. If a deadline is close, tell us early and we will prioritise it.
Frequently asked questions
What does a contractor accountant do?
We prepare your company’s accounts and tax returns, run your payroll and VAT, file your personal tax return, and help you understand IR35 and the best way to pay yourself.
Who decides whether IR35 applies to my contract?
For medium and large private sector clients and public sector clients, the client usually decides and should give you a status determination statement. For small private sector clients, your own company decides.
How should I pay myself from my company?
Most directors use a mix of salary, dividends and pension contributions. The best balance depends on your profits and other income, and we review it with you each year.
Is it difficult to switch accountants?
No. Once you appoint us, we contact your previous accountant for the information we need and take it from there.
Can I meet you in person?
Yes. You are welcome at our office next to Uxbridge Underground station, or we can work by phone, email and video call.