What is day to day life like as a contractor running a limited company?

Here at Freelancer Accounting (http://www.freelanceraccounting.com), we take pride in supplying specialist contractor accountants who can remove a considerable amount of the stress from the task of keeping your financial and tax affairs in order, and as any seasoned contractor will tell you, there are definitely certain things that can catch you out from your very first day contracting, which makes our extensive range of services especially invaluable.

With one of our accountants for contractors by your side, you’ll find it easier to face up to your long list of obligations, with one of the main ones that you will have to consider – not only as you begin contracting for the first time, but also every time you are presented with a contract – being IR35. Contractors are continually complaining about the difficulty of understanding IR35, but we’ll help you to familiarise yourself with its requirements and construct contracts that stand up to an IR35 inspector’s scrutiny.

It will also be necessary for you to invoice your agent on a weekly or monthly basis, providing an approved timesheet. This will need to be forwarded to them within their prescribed deadline to ensure that there are no delays in payment. You will also need an effective method for recording all of the company transactions, namely payments, invoices and expenses – and again, our small business accountants can advise you on the most suitable arrangement.

Payroll is another aspect to which you will need to pay plenty of attention as a contractor, as in your capacity as a company director, you will normally take a salary from the company irrespective of whether you are working under IR35. The preparation of payslips will need to be arranged and necessary taxes will need to be paid in good time. Once the tax year comes to an end, an employers annual return (form P35) will need to be filed, in addition to forms P14, P60 and P11D if any expenses or benefits in kind have been taken by you from the company during the year.

Those contractors that work outside the scope of IR35 will take most of their income from the business by way of dividends, with board minutes and dividend counterfoils needing to be prepared as each one is taken. You’ll also need advice from a contractor accountancy firm like us on a sensible amount of dividends to withdraw, as they should not exceed the company’s profits after corporation tax. And of course, accounts will also need to be submitted by your company to the Inspector of Taxes and Companies House each year.

Here at Freelancer Accounting (http://www.freelanceraccounting.com), we can assist with these and the various other related tasks that will confront you as a contractor, such as completing and forwarding your company annual return to Companies House and personal tax and VAT returns. Contact our accountants in London now to learn more about our various well-priced packages.

Editor’s Note: Freelancer Accounting (http://www.freelanceraccounting.com) is represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Please direct all press queries to Louise Byrne. Email: louise@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.