What does a contractor accountant do?
A contractor accountant helps contractors manage their company finances and tax responsibilities. They support tasks such as company setup, payroll, VAT returns, annual accounts, Corporation Tax filings and Self Assessment tax returns. They also provide advice on contractor tax planning and IR35 rules.
What's included in your contractor accounting services?
You'll get access to a dedicated contractor accountant that you can book in time with easily, FreeAgent accounting software (worth £360/year) included for free and IR35 advice. Depending on your package, we can take care of your annual company accounts, confirmation statement, payroll, self assessment and quarterly VAT filing.
Do contractors need a specialist accountant?
Yes, working with a specialist contractor accountant can make a big difference. A specialist accountant for contractors can help with IR35 status, dividend planning, VAT schemes, and company filings.
What accounting software do you support?
We support Xero, QuickBooks and FreeAgent, and we will recommend the best one for you. Our packages include FreeAgent at no extra cost.
What expenses can contractors claim?
Contractors can claim expenses that are wholly and exclusively for business use. These often include computer equipment, software, travel and mileage, professional subscriptions, accountancy fees, home office costs and pension contributions. The exact rules depend on your IR35 status and working arrangement.
Do contractor accountants help with IR35?
Yes, our accountants for contractors provide IR35 advice, contract reviews, working practice advice, and support if HMRC raises questions. This advice helps contractors understand their position before starting a new contract.
How much do contractor accountants cost in the UK?
The cost of a contractor accountant in the UK usually depends on the services included. Most contractor accountants in the UK charge between £75 and £150 plus VAT per month. GoForma's contractor accounting packages start from £79/month. Fees depend on whether you are VAT registered, need IR35 support or require additional services such as bookkeeping and tax planning.
Can I switch to GoForma from my current accountant?
Yes, switching accountants is simple. At GoForma, we manage the entire process for you, including contacting your current accountant, transferring records, and setting everything up without disrupting your business.
Can a contractor manage their own accounts?
Some contractors choose to manage their own accounts using accounting software. However, tax rules, filing deadlines and compliance requirements can become complex. Many contractors prefer to work with an accountant to reduce the risk of errors and to receive professional tax advice.
Is a limited company better than umbrella for contractors?
A limited company can be more tax efficient if you work outside IR35, as it allows dividend planning and broader expense claims. An umbrella company offers simpler administration and may suit contractors working inside IR35. The better option depends on your contract terms, income level and risk profile.
How do contractor accountants help reduce tax legally?
Contractor accountants reduce tax through compliant planning. They optimise salary and dividend structure, select suitable VAT schemes, ensure all allowable expenses are claimed and use pension contributions strategically.
What records should contractors keep for accounting?
Contractors should keep records of all company income and business expenses. This includes invoices, receipts, bank statements, payroll records and tax filings. Maintaining clear records helps accountants prepare accurate accounts and meet HMRC reporting requirements.
When should a contractor hire an accountant?
Many contractors hire an accountant when they first set up a limited company. Early advice can help with company structure, tax planning and compliance with HMRC rules. Working with an accountant from the beginning can help contractors avoid mistakes and keep their finances organised.
How do I choose the right contractor accountant?
Choose a contractor accountant with proven contractor expertise, transparent pricing, recognised qualifications and strong IR35 knowledge. GoForma combines specialist contractor experience, fixed monthly fees and dedicated support, making it easier for contractors to stay compliant and tax efficient.
What is IR35 and how does it affect contractors?
IR35 is a UK tax rule that decides if a contractor is genuinely running their own business or just working like an employee for tax purposes. If caught inside IR35, you pay Income Tax and National Insurance as if employed, losing the tax planning advantages of operating through a limited company. GoForma provides specialist IR35 advice and contract reviews to help contractors understand and manage their IR35 status.
IT and Technology Contractors
