On this page, we cover:
Let’s address a myth of running a Limited Company from the start. You don’t actually need an accountant.
So why does almost everyone choose to have an accountant? Accountants help you stay compliant with HMRC, understand your business cash flow, profitability and how much you can withdraw, file accounts, process your payroll and complete yourself assessments.
As the director of a contractor limited company, you’re legally responsible for all those tasks, but by finding a good accountant you can in effect just sign on the dotted line and let the rest get taken care of without the hassle.
There are hundreds of specialist limited company contractor accountants in the UK. A contractor should choose an accountant they feel comfortable with and not necessarily a firm from a top 10 contractor accountants list. When selecting an accountant, a contractor should ensure that:
They’re a contractor specialist– accounting for contractor limited companies is generally less labour intensive than for limited companies with more complex internal structures. However, most contractor specialist accountants are specifically set up to deal with high volumes of business offering a quick turnaround to clients.
Although some contractor limited companies still use a traditional accountancy practice, most now use specialist contractor accountants to deal with their financial and taxation affairs.
There’s contractor focused pricing – contractor specialists generally offer their services at much reduced rates compared to standard accountants because there’s not a huge array of variables involved in contractor accounting like stock.
At best, a specialist accountant will be able to reduce the tax a contractor and a contractor limited company pays by a few thousand pounds. Contractors should satisfy themselves that the fee for any accountant’s services does not take up too large a proportion of the savings on tax they promise for a client.
You get a service level agreement– a contractor should make a list of what it is that they want from an accountant and, when deciding on one, use that list for comparison purposes. Benchmarks to consider may include time taken to receive a response, whether there is a dedicated account manager, regular account reviews, and so on.
They have technological capability– a specialist accountant will be able to recommend an online contractor bookkeeping package from which the accountant will regularly download their clients’ latest financial records. This greatly streamlines the process and cuts down the amount of time needed by the accountant to compile and submit tax returns, resulting in a significant saving in professional fees to a contractor.
Most self-employed contractors and limited company directors do not deal directly with HMRC on many taxation issues. Instead, they appoint their accountant or “agent” as their nominated first points of contact. Anyone appointed as an agent must meet HMRC’s standards for agents. To appoint an agent, use form 64-8 or the online authorisation service.
If an agent is not appointed, then HMRC will send personal and corporate communications on tax to the managing director of a contractor limited company and they will only accept a reply from that director. If you want to get the most out of your accountant and reduce your workload then appointing them as your agent is a good idea.
It’s not just on a personal or corporation tax level that an agent can be appointed. If a contractor decides to register their limited company for VAT, its director can also appoint an agent specifically for VAT.
Any contractor considering switching to an umbrella company will want to know how to find the best provider to work with.
Although you could spend your precious time and energy searching the web for the best umbrella company, there is an easier way – using an umbrella calculator.
In this guide, Umbrella Supermarket explains why every contractor should use an umbrella calculator in 2021.
If you are considering contracting you will need to decide on PAYE or umbrella.
It can be a difficult decision to make and contractors will inevitably be questioning which option will be the best for them.
To help every contractor get on the right track for them, in this guide Umbrella Supermarket looks at PAYE vs umbrella, outlining the key differences and how this will impact you.
There are many reasons that contractors across the UK opt to work under an umbrella company.
Umbrella companies offer an easy way to contract and remove the need for the contractors to worry about the burdens of admin, finances, tax and IR35, all things that limited company contractors have to deal with.
For this reason, many contractors will be weighing up their options and questioning whether it is worth using an umbrella company in 2021. To help make the decision that little bit easier, Umbrella Supermarket has put together this guide on the pros and cons of using an umbrella company.
Any contractor that is considering operating through an umbrella company in 2021 will need to understand Umbrella Company fees - from why an umbrella company charges fees, how they are paid to how much the contractor will pay.
In this guide, Umbrella Supermarket answers those all-important questions to help every contractor know exactly where they stand when it comes to umbrella company fees.
If you’ve made the decision to contract through an umbrella company in 2021, you will next need to find an umbrella company that’s right for you.
After all, there are lots of umbrella companies out there, so how do you know which one to choose?
To help you find the best umbrella company for you, in this guide Umbrella Supermarket outlines what makes a good umbrella company, so you can rest assured you’re making the right move.
One of the many advantages to operating through an umbrella company for contractors is that they become an employee of their chosen provider.
In turn, this means that the contractor will be automatically enrolled onto the umbrella company’s workplace pension scheme.
To help contractors find out more about umbrella company pensions Umbrella Supermarket has put together this handy guide.
If you are considering contracting through an umbrella company you will naturally have questions and queries over how they work.
After all, making the move to umbrella can be a big step for contractors. To help, in this guide Umbrella Supermarket explains how to get started with an umbrella company and share our top tips for using one in 2021.
PAYE or umbrella is a question asked by every contractor. Which one you opt for will have a big impact on your contracting career and lifestyle. So, it's important to make the right decision for you.
To help makes things a little bit easier, Umbrella Supermarket has put together this guide on PAYE or umbrella, outlining the key differences between each, to help you make the best and most informed decision for you.
One of the many benefits to working through an umbrella company is that you will receive holiday pay as well as a range of other statutory benefits including sick pay, maternity and paternity pay.
To find out more about umbrella company holiday pay, and how to calculate how much you will be entitled to, Umbrella Supermarket has put together this handy guide.
Contractors must make several decisions throughout their contracting careers. One big decision contractors have to make is how they will operate.
One way that contractors can work is through an umbrella company.
Umbrella companies have become an increasingly popular way to contract in the past few years, offering many benefits to the contractor. But, how do you know whether this option is right for you?
To help every contractor make the right decision for them, in this guide, Umbrella Supermarket explains when not to use an umbrella company.
There are tons of benefits to using an umbrella company, which is why they have become such a popular option for contractors in recent years.
After all, an umbrella company takes away the stress and hassle of operating through a limited company whilst offering contractors a range of advantages, such as statutory rights, paying them a salary, deducting correct tax levels and National Insurance, and taking care of tasks like expense processing and invoicing.
However, as more and more contractors opt to use the services of an umbrella company, more providers have started to claim that they are HMRC approved.
To bust the myths around HMRC approved umbrella companies and get straight to the facts, in today's guide Umbrella Supermarket look at whether HMRC approved umbrella companies really exist, so you know exactly where you stand.
If you're considering making the leap to contracting, you will understandably want to know how much you will have to pay in umbrella company costs. After all, this amount comes directly out of the contractor’s pocket, so it’s important to be clued up on how much you should expect to pay.
To help contractors, in this guide Umbrella Supermarket answer the all-important question of how umbrella companies cost in 2021.
