Do I need an accountant as a contractor working through my limited company?

As an independent contractor working through your own limited company, your days are mostly spent working on your client’s projects. The last thing you want to do after a busy day is to sit down and look over your accounts and figure out what tax needs paying and when.

One way to avoid this is by hiring an experienced contractor accountant to handle these matters on your behalf. 

Whilst there is no legal requirement for you to use an accountant for your limited company, we believe the following reasons explain the benefits of doing so:

Free up your time

Do you have much spare time? Probably not! Most of us don’t these days. Which means you may not have the time to get fully up to speed with the multitude of tax allowances and reliefs that are available to limited companies.

And, if you have spent time getting to grips with the UK’s complex tax system, you may find that changes are announced that makes the information you have diligently spent time learning, redundant.

Hiring an accountant who understands how a limited company operates will save you time and possibly money in the long run.

Remove the stress of dealing with HMRC

It is possible that at some time HMRC may feel they need to get in touch with you. For example, they could have a query relating to your tax code, tax return or corporation tax.

From experience, we know that contractors find dealing with HMRC worrisome, stressful and time-consuming. Plus, if you find that you have made a mistake on your tax return or have submitted information late, it can be costly as you can be issued with a penalty.

As experienced contractor accountants, we can deal with most HMRC enquires on your behalf and also make sure that information is submitted correctly and on time.

Validate who you are

You know who you are, and if you choose us to become your accountant, we will know who you are as well. But, there may be times when you have to prove your identity to others, like a landlord, mortgage lender or pension provider for instance.

So, when the time comes and you are ready to purchase a property or move into a rental property, your accountant should be willing to provide you with a suitable reference.

Accountants have specialist knowledge

As experienced contractor accountants, most of our time is spent working with numbers, but we do more than tallying up figures. We use our specialist knowledge and years of training to analyse your figures, so we can offer you expert advice on things like cashflow and how to minimise your tax liabilities.

We can also offer guidance on how to make better use of expenses and advise you if you need to become VAT registered.

Next Steps?

If you feel you would benefit from our expertise, give us a call on 01962 867550, or send us a message via our website and one of our Directors will call you back.