AccTax Consultancy Ltd is a firm of accountants who also has specialist knowledge and expertise as contractor accountants. Consequently, contractors and freelancers who employ our contractor accounting services enjoy the best of both worlds. Professionals, who are a contract workers or freelancers with their own limited company, should benefit from using an accounting service with the right skills for contract workers
Whatever your reason might be for looking into contracting, we are here to help you. Finding a specialist contractor accountant that you trust is important. We can offer you a bespoke, tailored accountancy service which means you can inform us of your requirements and circumstances. Once this has been discussed one of our specialist consultants will advise you of your most suitable option. We can provide accountancy services to various contractors as follows:
o IT consultants
o Health care workers
What to know about IR35.
IR35 was put in place in April 2000 and is a piece of anti-avoidance legislation aimed at preventing disguised employment; this is where someone who would otherwise be employed performs their duties through a company and enjoys the tax benefits associated with this.
An employee would leave his employment on a Friday afternoon and return to work the following Monday to do the same job. Instead of being an employee of his original employer he would be employed by a personal service company of which he would be a controlling shareholder/ director and through this his services would be supplied. The intermediary would invoice the original employer for these services and would receive a gross payment.
Through coming to the above arrangement the original employer would avoid paying Class 1 NIC at 13.8% and the worker could arrange his payments between salary and dividends in order to minimise his tax and NI liabilities. The government, therefore, introduced anti-avoidance legislation, known as IR35, in April 2000 with the purpose of countering this problem. To know more about it in details please click here.