Accountants for IT Contractors

Accountants for IT contractors

We can advise on pertinent issues and business structure. For example, the most tax efficient model is to set up a limited company. However, this comes with a number of specific tax liabilities.

Corporation tax

Corporation tax is levied on profit. In other words, it’s levied on whatever’s left over when expenses and salary have been taken. This includes profits from investments and capital gains.
IT contractors have their own unique deadlines for corporation tax returns to HMRC. Often, this differs from the regular tax return deadline.

Tax on dividends

Running a limited company allows you to pay most of your income in dividends. Ultimately, this helps to lower your tax bill.

However, you still need to record these on your tax return. As specialist accountants for IT contractors, we can help you get this right.

Income tax and National Insurance Contributions (NIC)

Income tax and NIC are payable on salary deducted from turnover. As your own company director and employee, you’ll only be paying yourself. Even so, you need to set up a PAYE system for payroll.

VAT

After a certain threshold, you’ll be expected to register for VAT. After that, you’ll need to charge this tax on invoices and submit quarterly returns.

Specialist IT contractors accountants

As chartered accountants, we offer a range of specialist accounting services for IT contractors. Above all, we’ll save you time and money. We can:

• Register your limited company with Companies House and HMRC within the mandatory time frame
• Ensure your returns are submitted and taxes paid by the deadlines (which are not all the same)
• Help with tax planning
• Provide guidance on setting up PAYE
• Ensure dividend payouts comply with company law