How to choose a good IT contractor accountant
Just as every small business needs to ensure their financial affairs are being handled by experts, all IT contractors and freelancers should make sure they sign up with a reputable, specialist accountant.
With the added complexity of tax issues such as IR35, we recommend you follow these top tips to help choose a good contractor accountant (visit Contract Eye for a list of specialist contractor accountants).
These tips are should be read along with our Top 10 Tips for choosing a small business accountant.
1. Above all, you should always employ a specialist contractor accountant. Only a company who deals mainly with the freelance market will have a sufficient understanding of the tax issues involved in running a contracting business.
2. Fees - most contractor specialists will provide a complete accountancy service for a fixed monthly fee. This should typically include all dealings with the tax authorities, completion of TAX returns, PAYE and NI calculations, and your year end accounts. Make sure you know what is provided within the monthly fee before signing up.
3. Extra Services - many contractor accountancy packages may include things like IR35 advice, and completion of your annual self assessment return. If you are just starting out, your accountant may also be able to set up a company for you, register you for VAT, and other services if you require them.
4. Knowledge of tax legislation - IR35, Managed Service Companies, and more recently, Income Shifting, are major tax issues which will affect a large number of contractors. Any accountant you sign up with must be up-to-speed with these topics and how they may affect you personally.
5. As with all other business professionals, one of the best ways to find a good contractor accountant is via recommendations from other contractor colleagues. Many longer term contractors will have used a number of accountants in the past before finding one that suits.
You can also visit our dedicated contractor site, Contract Eye, to access a growing list of contractor accountants, and read the popular article on what you should expect your contractor accountant to do.
Posted February 12, 2008
