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 and Section 660, we recommend you follow these top tips to help choose a good contractor accountant.

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 contractor specialist 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.

4. Knowledge of tax legislation - IR35 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.