IT Contractors - The Benefits of Using a SPECIALIST CONTRACTOR & FREELANCER ACCOUNTANT Brookson, here with all the right options
The Benefits of Using a Specialist Contractor and Freelancer Accountant Introduction Contracting is becoming an ever increasingly popular way of working for many people in the UK. A flexible working pattern, possibility of financial return, and career progression are attracting many into the world of freelance. As technology has developed and become essential in working life, the amount of contractors working in the IT sector has also grown. When becoming self-employed, it s important to ensure you have your business finances in control with the help of a specialist contractor and freelancer accountant who understands the way you work. Is a High Street Accountant best for my needs? Level of support Being able to visit your local accountant in person may be reassuring when considering your IT contractor accountancy options however it s a good idea to assess the bigger picture and ensure the fit is right for you and that you ll receive the high level of proactive ongoing year round advice and support you require as an IT contractor or freelancer. Hidden Fees When appointing a high street accountant, you should ensure the fees are totally transparent and you understand what s included and what s not. Often, additional costs are quoted separately so what appeared to be a low cost option when you signed up, turns in to something more expensive than you d initially expected. Are they qualified? As a limited company director you will more than likely be seeking advice and support regarding IR35. Therefore, it is worthwhile making sure your accountant has the right legal expertise and qualifications to advise you on this. 2
What are the benefits to an IT Contractor choosing a specialist contractor and freelancer accountant? Industry experts A specialist IT contractor accountant typically works solely with self-employed professionals just like you. They understand the way you work and they understand the IT industry. Be organised in order to succeed As an IT contractor, it will also be your responsibility to ensure you have a consistent and steady amount of contracts. IT skills are highly sought after, meaning that contractors in this field will often be in demand and may have a lot of work coming in coupled with long hours. Therefore, organsiation is essential, especially with accountancy matters. Leaving you to concentrate on what matters most Through outsourcing tasks such as bookkeeping, tax and expenses frees you up to focus on securing contracts and making your Limited Company a success. Specialist contractors use cutting edge technology and are on hand to offer expert advice to make sure that IT contractors have all the support they need to get on with their work. Legislative Changes Specialist IT contractor accountants should be continuously ahead of the market when it comes to legislation changes within the IT contractor market. With qualified in-house tax and legal advisors, you can be sure you will always be acting compliantly with current legislation. A good contractor accountant will ensure you are best placed to fully understand these changes and will advise you accordingly to ensure you re not put at risk in any way and are being taxed appropriately. Brookson is a great company, but, it is the people working there that makes the difference. I wish I d joined earlier! Dimitrios Papadopoulos 3
Key examples of important legislation to be aware of: IR35 IR35 determines an IT contractors tax position with HMRC and regulates whether you re entitled to receive payment in the form of dividends or whether you are regarded as a disguised employee. If so are, you are only entitled to receive payment on a PAYE basis. Travel & Subsistence Expenses In order to claim tax relief on expenses such as travel and subsistence, the IT contractor will be subject to a Supervision Direction Control Test (SDC), which is for individuals working through an umbrella solution. IT Contractors who fail this test they will not be eligible to claim travel and subsistence expenses which could impact their take-home pay. How to ensure you are maximising your take-home pay Support from industry experts Maximise your earnings with the correct, proactive advice and support from specialist IT contractor tax advisors allowing you to maximise your take-home pay in a HMRC compliant way. A financial service throughout the year Accountants on the high street tend to focus on providing a year-end service which means that you will not get the benefit of some of the tax planning opportunities that arise throughout the financial year. An IT contractor accountant has the experience and knowledge to make sure you are tax planning effectively. This is through using techniques such as claiming expenses appropriately as you go and minimising higher rate tax liabilities through second shareholder opportunities increasing your take-home pay effectively and compliantly. What else is included with a specialist accountant? An IT contractor accountant often doesn t just provide accountancy services. Often, they provide access to different areas of business within the contractor market to a network of other advisors such as legal, insurance, specialist financial advice, incorporation companies, banks and recruitment agencies for the IT industry that you could utilise to help towards the smooth running of your business and also many aspects of your day to day life. 4 Get In Touch Speak to one of Brookson s Specialist Advisors on: 0800 230 0213
Cloud Based Technology IT contractor accountants have often developed bespoke technology to simplify your life with access 24/7 via online portals on any device. This specialist technology has been tailored specifically to how an IT contractor works which enables them to process expenses as and when they come in, save important documents digitally, retrieve these documents when needed, create and send invoices and lots more. This technology gives you the tools and freedom to run your business when and where is best for you. The benefits of affiliated bodies and partnerships Dissimilar to a high street accountant which may or may not be regulated by key industry bodies, a specialist IT contractor accountant often has key partnerships with organisations such as the FCSA, IPSE, REC and APSCo who all work to benefit to contractor industry. You should be sure to select an IT contractor accountant who is a member of bodies such as these as you will be reassured in their processes and service delivery. Why choose Brookson as your specialist contractor and freelancer accountant? We highly recommend that you appoint a specialist contractor and freelancer accountant to ensure you re maximising your earnings compliantly at all times. Brookson, are specialist accountants market leading, all-inclusive services for contractors and freelancers who have helped over 90,000 people just like you over the past 20 years! Key service features: One monthly fee with no exit fees, or tie-in period All paperwork including VAT, tax and year-end returns are completed for you Fast and easy set up within 24 hours Know exactly how much you can withdraw from your business on a daily basis Unlimited IR35 (Employment Status) reviews Expert advice from a dedicated support team, 6 days a week View your business information 24/7 accessible anywhere via computer, mobile or tablet Legal helpline, with access to free preliminary legal support 5 For further information or free consultation with Brookson, give their team a call on 0800 230 0213 or email newbusiness@brookson.co.uk. Get In Touch Speak to one of Brookson s Specialist Advisors on: 0800 230 0213