Contractors Tax Issues – A How to Guide
Working as a contractor is a stressful job that requires excellent time-management and people skills. From very basic self-employed service contractors to complex business deployment including employing the right staff and scheduling their tasks to ensuring that the appropriate materials have been ordered and distributed to the correct place, it’s a juggling act that relies on a certain type of individual.
With that being said, the last thing you want to add to your already overfilled plate is having to deal with a poor tax accountant who can’t get the job done properly.
If you’re on the lookout for a new accountant to handle your tax affairs and need to ensure you find just the right fit for the job, read our tips on how to find the financial whizz you need, allowing you to get back to the important job of running your business.
Pick someone who’s a specialist in contracting
Because most contractors work and handle money in a similar way, it’s important to hire an accountant who understands this process and is familiar with it. As a contractor, it’s likely that you get paid either weekly or monthly and have few regular outgoings. Most also choose to take a small salary and take most of their income via dividends. Someone specialising in contracting accountancy will understand this and will, therefore, be able to assist you fully, as opposed to a regular accountant who may not understand what it is that a contractor does or how best to deal with it from a tax perspective.
Furthermore, someone with experience of working with contractors will understand the importance of complying with the IR35 legislation, which ensures that companies supplying workers to clients via an intermediary are not engaging in tax avoidance. Employing someone without this specific knowledge could land you in a sticky situation, so choose wisely.
Ensure that they are going to provide you with a good service
As is the same with anything, you want to ensure that you will be receiving a beneficial service that is thorough and doesn’t leave you feeling neglected as a client. Make sure you ask the right questions to establish exactly the kind of service you are going to be receiving. For example, will your work be handled by a dedicated account manager who isn’t also juggling too many other clients? If the answer is no, it’s likely that the service you receive will be rudimentary. It’s also worth checking if there is any type of money-back guarantee if your needs are not met.
Never underestimate the importance of a good reputation
Most accountancy firms will gain new client wins through positive reviews and recommendations from existing clients, so it’s important to keep your ears open to find out who is reputable. Ask people that you know who work in the industry who they use or take advantage of the internet and get stuck into researching some different firms.
If you require any advice regarding Contractors Tax Issues, our team of Tax Advisers and Certified Accountants will be happy to help. Call us on 01216297768 for our Birmingham office or 02070784001 for our London office.