Contractor Accountants

Accountants for Contractors & Freelancers

Contracting through your own limited company is one of the most tax-efficient ways to work — but only if it's set up and run correctly. Accutax Services helps contractors, freelancers and consultants across the UK stay compliant, navigate IR35, and keep more of what they earn.

Whether you're going limited for the first time or switching from an umbrella or another accountant, we make the process simple and support you remotely wherever you're based.

Understanding IR35

IR35, also called the off-payroll working rules, is designed to make sure contractors who would be employees if they were engaged directly pay broadly the same tax and National Insurance as an employee. Whether a contract is "inside" or "outside" IR35 depends on the reality of the working arrangement, including control over how the work is done, whether you can send a substitute, and whether there is an obligation to offer and accept work.

Who decides your status depends on who you work for. Public sector bodies and medium or large private sector clients must make the decision themselves and give you a status determination statement. If the client is small, your own company is responsible for deciding, and for paying the right tax if the contract falls inside the rules.

We review new contracts and how you actually work, explain the risks, and help you challenge a determination you think is wrong. Status decisions can be complex, and where a contract needs a specialist legal review we will tell you.

Limited Company or Umbrella?

An umbrella company employs you, invoices your client or agency and pays you through PAYE. It is simple, with no company of your own to run, but you pay employee tax and National Insurance on all your earnings and the umbrella takes a margin.

Running your own limited company gives you more control. For contracts outside IR35, you can usually take a combination of salary and dividends and have the company meet allowable business costs, which can mean more take-home pay. In return you take on director responsibilities, annual accounts, a corporation tax return and payroll. If you are going limited for the first time, our company formation service gets the company set up correctly.

Expenses and Paying Yourself

Contractor companies can generally pay costs incurred for the business, such as professional indemnity insurance, accountancy fees, equipment and software you use for work and relevant training. Some costs, like travel, depend on the facts of each contract and on whether it is inside IR35, so it pays to check before you claim.

How you draw money from the company affects the total tax paid by you and the company. Rates and thresholds change every year, so we review your salary, dividends and pension contributions annually as part of our tax planning service.

What a Typical Year Looks Like

As your accountant we run your director's payroll, prepare and file VAT returns if you are registered, produce your company's annual accounts and corporation tax return, file the confirmation statement at Companies House and prepare your personal self assessment return. You get one point of contact, a fixed monthly fee and reminders before every deadline. Fees are set out on our pricing page.

Contractor Accountant FAQs

The information on this page is general guidance only and does not constitute tax advice for your specific circumstances.

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