Choosing an Accountant for Your Contractor Limited Company

Over the years we’ve helped many contractors who wanted to incorporate as limited companies. We understand that forming a limited company is a big decision, and we know that many contractors like to be able to consult with an accountant before they take such a big step. But you shouldn’t rely on just any accountant; you need one who understands the requirements of a contractor, the ins and outs of limited company structure and legislation and, of course, you need an accountant you can trust to advise you based on what’s best for you. If everything goes right, operating a limited company as a contractor should allow you to enjoy a higher return on your work with minimal administrative stress. Of course, if you go about it the wrong way, you could be facing a mountain of paperwork to deal with and even a fine. At ICS Accounting, we firmly believe that our clients should have the information they need to make good decisions, without being pressured to go one way or another. With that in mind:

Is a Limited Company Right for You?

Limited companies are often considered to be a highly practical option for anyone ‘outside IR35’. Contractors deemed to be ‘inside IR35’ are liable for full PAYE and National Insurance contributions (NICs) which can affect whether it’s the right choice. (We do offer a free IR35 review to help contractors who might not be sure to determine where they stand). If a limited company isn’t the best choice for you, an umbrella solution may be more appropriate. We would recommend contacting an expert for a discussion and consultation based on your individual circumstances.

Choosing the Right Experts

Many accountancy firms will be willing to help you set up a limited company for a fee, but not all of them have the specialist knowledge needed to ensure you’re compliant with all relevant legislation. We’ve already mentioned IR35 regulations but there are also specific regulations and requirements needed for MSCs (Managed Service Companies) which must be observed. Any qualified accountant will be able to provide you with basic services, but specialists will be able to put these in perspective, prepare documents in a timely manner and in compliance, and offer you advice as you move forwards. You should also consider how much support a given firm offers compared against how much support you expect to require, as well as the cost of working with a given accountant.  While reputable accountants should make it easy to switch from them to another, it’s always worth checking whether your chosen firm makes this simple or not.

Solo Accounting vs. Accountancy Company

If you do go ahead with setting up a limited company, you’ll have another decision ahead of you; you can either do all the legwork yourself or you can choose to work with an accountancy firm like ICS Accounting. There are certainly benefits to going solo (fewer overhead costs, etc.), you’ll have to have the time to take on paperwork and process, both mundane and complicated. We know that many of the contractors on our books started working with us because it gave them back time – which they can spend on building their business or with their family. There’s no reason you should stress about tracking insurance cover, invoices, tax returns and IR35 when you’ve got ready access to a team of qualified accountants and administrators looking to help you. To start the ball rolling, just contact us today and we’ll arrange an opportunity to discuss your needs.