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Your very own expert Contractor Accountant

Whether you are an electrical contractor, building contractor, finance contractor, IT contractor, consultant, health and safety consultant, SME consultant or general contractor or consultant we have the contractor accountant and contractor accounting package for you from as little as from as little as £10 per month.

Whether you are contracting long term or on a short term basis, Accounting Wise can make life simple for you by helping you with your accountancy and tax requirements.

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Your own dedicated contractor accountant
All returns and filing included
Unlimited help and advice
Leading cloud accounting software
Real-Time Bookkeeping
Reminders – never miss a deadline

Unlimited help and advice
Leading cloud accounting software

Dedicated contractor accountant
All returns and filing included

Real-Time Bookkeeping
Reminders – never miss a deadline

We provide the complete contractor accountancy for businesses nationwide

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Why use Accounting Wise for your Contractor Accounting?

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Your Own Dedicated Contractor Accountant

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Build Your Own Package

When you join us, you will receive your very own dedicated contractor accountant. Our fully qualified and friendly team will be on hand to help you throughout the year for all your financial queries.

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Leading Accounting Software

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You are provided with leading accounting software which will help reduce the time it takes to – provide quotes and invoices to customers, chase payments, and monitor outstanding balances.

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Tailored Contractor Accounting Services

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Tax & Accounting packages tailored to suit your contractor business. We are always straightforward in our services & pricing. We take care of your accounting and let you get on with making your business a success.

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Unlimited
Expert Advice

Unlimited Expert Accounting Advice
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Your dedicated contractor accountant will always be on hand to answer any questions about your contractor business. You can contact them via email, phone, live chat, Microsoft Teams or meet them in person.

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Regular Deadline
Reminders

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We send regular automated reminders to inform you of when your accounts and returns are due to be submitted, helping to ensure you never miss a deadline for your contractor business again.

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We currently support over 2,000 individuals and businesses in the UK

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Get started with the right Contractor Accounting solution for your business

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Included in the Contractor Accounting Package

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  • Tax efficiency and business recommendations

  • Representation in the event of an HMRC investigation

  • Unlimited help and advice

  • Reminders for all of your important deadlines

  • Access to business guides and resources

Get started with the right contractor accounting solution

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Our Accredited Accountants

You can feel safe in the knowledge that we are experts in our field.

Our online accountants have a range of qualifications from the Association of Accounting Technicians (AAT), Association of Chartered Certified Accountants (ACCA) and the Institute of Chartered Accountants in England and Wales (ICAEW). We are also an Institute of Certified Practising Accountants (ICPA) accredited firm, and a HMRC registered Agent.

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What is a Contractor?

Contractors are individuals who provide services to clients under specific terms. They tend to operate via their own limited companies and are not employees for a larger firm or business.

A Contractor is responsible for their own ‘business’ dealings and has control of how and when they do their work. They would either be employed through an Umbrella Company for the purpose of paying them (and paying their taxes) or have their own Limited Company or be a Sole-Trader and pay their own taxes.

A limited company is a small business set up by an individual, where they provide their services on behalf of the company.

Contractor Accounting - What is a contractor?

Things to consider as a Contractor
IR35 Contractor Accounting

Things to Consider as a Contractor

Legal structures for contractors – How best to Trade?

This is a question that all new contractors ask: whether it is better to trade as a Sole Trader, through a Limited Company or an Umbrella Company.

There are pros and cons to all methods and so it’s important that you choose the right method for you. As a Sole Trader you do not have to take IR35 into consideration (as it is your customer’s responsibility to ensure you’re operating outside of IR35) and it is more tax efficient than an Umbrella Company, but less so than a Limited Company.

A Limited Company is the most tax efficient but there is a bit more work and more responsibilities compared to a Sole Trader. IR35 also needs to be considered if you have a Limited Company. An Umbrella Company is not very tax efficient but can be less hassle which can be more convenient if you only have a short term contract.

IR35 – Contractor Accounting

In summary, IR35 is a piece of legislation designed to prevent contractors from acting as ‘disguised employees’.

This is when the relationship between the client and contractor is much the same as an employer/employee relationship and therefore the contractor should be paid through the PAYE system. It’s imperative that you have an IR35 review to see if you are inside or outside of the legislation.

If you are caught inside IR35 but trade as though you are outside of it then you are at risk of penalties if HMRC should decide to look into your business in more detail. You may have underpaid NI which may need to be backdated and paid to HMRC along with further penalties and interest. We have hundreds of contractor clients and so our accountants are extremely knowledgeable in all areas concerning contractor tax requirements, and are able to give you honest advice on how HMRC will view your business.

Accounting Wise, as part of our Contractor Accounting package, review your circumstances and give you their opinion on whether or not your business falls within the legislation, meaning that you can be safe in the knowledge that you are trading in the correct way.

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Essential FAQs for Contractor Accounting Services

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A contractor is a self-employed individual who provides services to clients on a temporary or project basis, often through their own limited company or as a sole trader. Contractors usually work on short-term contracts.

IR35 is a tax legislation aimed at determining whether a contractor is genuinely self-employed or should be treated as an employee for tax purposes. If caught by IR35, contractors must pay PAYE and National Insurance as if they were employees.

Many contractors choose to operate through a limited company for tax efficiency and limited liability protection. Operating as a sole trader is simpler but offers less protection for personal assets and fewer tax-saving opportunities.

Contractors must register for VAT if their turnover exceeds the VAT threshold. Voluntary registration is also possible, which may be beneficial depending on your clients and expenses.

Contractors operating through a limited company need to pay Corporation Tax, VAT (if registered), and personal taxes on any salary or dividends taken. Sole traders must pay income tax and National Insurance Contributions on profits.

Yes, contractors can claim allowable business expenses such as equipment, software, travel, and office costs. However, IR35 can limit the expenses you can claim if you are caught by the rules.

If you operate as a limited company, you typically pay yourself a combination of salary and dividends. This can be a tax-efficient way to extract profits from your business.

While not required, most contractors use accountants to manage their tax returns, company accounts, and compliance with IR35, especially as contractor accounting can be complex and time-consuming.

Missing tax deadlines can result in penalties and interest charges from HMRC. This includes penalties for late filing of VAT returns, Corporation Tax returns, or Self Assessment tax returns.

Yes, contractors can work for multiple clients simultaneously. In fact, working for multiple clients can be a strong indicator that you are operating outside of IR35.

To close your limited company, you can either apply to strike off the company from Companies House if it is solvent, or go through liquidation if the company is insolvent. Final accounts must be filed, and all taxes settled. Consult an accountant for guidance.

Yes, contractors can move into permanent employment with a company. If you choose this route, you’ll need to close your limited company or cease trading as a sole trader, and begin paying tax through PAYE as an employee.

Switching to us for contractor accountancy is simple

1 Choose Your Package

Pick the contractor accounting services that you would like from either our pre-built packages or build your own to find out exactly how much you will be paying each month.

2 Sign up with Us

Once you have picked your level of service you’ll simply need to send over a few extra details to register with us via our sign up form or over the phone

3 You’re ready to go

That is it, we will begin to set your contractor services up for you, contact your previous accountant if required, and begin the authorisation process with the HMRC

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Online Company Formation Services

Free company formation with our Pre-Built or Bespoke Accounting packages!

All official documents provided

Online Hub to manage your company

London Registered office Address

Your own incorporated limited company

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Accounting Wise is a trading style of Accounting Wise Ltd, a limited company registered in England under company number 09365202. Our registered office is: The Carriages, Station Road, Ware, SG12 9PL UK.

Content is for general information only. Always take advice.