Contractor - a carpenter with an electric sawIt’s easier than ever to become an independent contractor, and the number of workers taking the leap is only increasing: as of 2018, over 19% of the labour force in London is self-employed. By going at it yourself, you have greater freedom, a better work-life balance, and hopefully more money in your pocket. As an independent contractor, your rate could even double. However, being an expert in your field does not mean you are an expert at bookkeeping, and without detailed knowledge of things like taxes and legislation, you could easily make a costly mistake.

When it comes to choosing your accountant, you don’t just want to find someone who knows how to look after contractors; you also want a London accountant who is local to you. Your accountant will be looking after your day-to-day finances, after all, so they need to understand your individual needs.

As a contractor, why do you need an accountant?

  • They know what they are doing – just like you know your stuff, they know theirs.
  • As a contractor, different legislations like IR35 apply to you – do you know what they are?
  • You want to spend your time building your business, not buried in paperwork.
  • You could save a lot of money – you’re hiring a financial whiz to look after your interests!

Tax and compliance

Taxes are time-consuming. If you have a limited company, for example, you will need to stay on top of corporation tax, National Insurance Contributions, VAT, income tax, and potentially capital gains tax if you close your company. Expenses can also be a confusing aspect of taxes. If you are not aware of what expenses contractors can claim, you could be losing money – or mistakenly claiming things you shouldn’t. Contractor accountants are qualified in handling all of these things, and will always be on top of legislative acts that can affect your business.

Accounts and bookkeeping

Bookkeeping is the recording of daily financial transactions, such as tracking your payments and invoices. Making sure that your transactions are correct and up-to-date means your business will run smoother, but only if the information is accurate. If you consistently make mistakes or fail to keep on top of your bookkeeping, you could face cash flow problems, which can have serious consequences. In the long run, it is always better to let specialist contractor bookkeepers take care of your finances, to ensure your business is running as efficiently as possible – even if you’re just one person.

How TaxAgility can help you

London’s local accountants TaxAgility have years of experience looking after the accounts of contractors. Whether you are under an umbrella company or contracted through your own limited company, we know how to stay on top of the individual concerns you have. Every contractor is an individual, so we like to get to know your business and tailor our services to meet your needs. That’s why we are London’s local accountants, looking after London’s contractors.

At TaxAgility, we can complete your self-assessment tax return and submit it for you, tell you all about pension plans, ensure you minimise your tax liabilities, and help you make your business a sound investment.

For more advice on how we can help you with your financial needs, contact TaxAgility today on 020 8108 0090.