Ainsworth & Co, Chartered Accountants and Business Advisors.

IT Contractors - Accounting & Tax Guide


Accounting and Tax Services for IT Contractors


Ainsworth Accountants provide a full range of Accounting and Tax Services to IT Contractors.

We are based in Preston, Lancashire, and offer a UK-wide service.



Important Information

Please note that major changes to the UK tax system were announced in 2015, which directly affect contractors.

Please see our Contractor Tax Changes webpage for more details.



CURRENT OFFER: FREE LIMITED COMPANY

We will form a Limited Company for you, free of charge, and complete the registrations with Companies House and HMRC. This is subject to an annual contract to include Company Accounts & Tax filing, PAYE and Self Assessment, payable in 12 monthly instalments, commencing on the company formation date. Typical fees on the right of this page.



IR35

Please note that although we have clients who are contractors, we are not experts on IR35. It is the responsibility of the company directors to identify the IR35 status of the company.

We strongly recommend that expert advice is taken from Qdos or similar organisation dedicated to IR35 issues.

Please see our Contractor Tax Changes and IR35 webpages for more details.



Introduction


Independent contractors have the dual role of meeting the demands of their assignment, and running their own small business.

As an IT Contractor your business will be as a Sole Trader or Limited Company.

Either the businesses you are providing services to, or an intermediary agency, may require you to trade as a limited company.

Please see our guide Sole Trader or Limited Company? which explains many of the differences between them.


Accounting and Tax Fees


Typical monthly fees are shown in the blue box opposite. >>>>

Please also see our webpage for annual Accounting and Bookkeeping Fees

Our fee proposal has the option for you keeping your own records and bookkeeping, or, whether you would like us to do it all for you, or, we can divide it between us. Many clients are able to do their own PAYE and VAT.


Bookkeeping & Bookkeeping Support


We offer a free spreadsheet for bookkeeping, however we find that most people require bookkeeping training in the first year.

The spreadsheet produces a Profit & Loss Account and Balance Sheet with an estimated Corporation Tax liability.

The monthly plan includes bookkeeping support, but not training. Typically we find that clients are able to keep good records, but will need training in the first year.

We offer a block 5 hour training arrangement for £50.00 + VAT, which includes email and telephone training.

For basic transactions, eg. your fee invoices and expense claims, the bookkeeping training is unlikely to be necessary after the first year.

If we do all the bookkeeping for you, it will be on the HMRC and ICAEW approved QuickBooks software, and we will supply you with the reports which you need.

If you would like to keep your own records on the popular online software, eg. QuickBooks Online or FreeAgent, we can set this up for you and invoice you directly.


IR35


Of particular importance for Contractors is the IR35 legislation which applies to limited companies, but not to sole traders. Please click for more IR35 information.

Ainsworth Accountants have a Partnership Agreement with Qdos Consulting which provide a range of insurance and consulting services designed to give you advice and insurance in respect of potential IR35 implications for your business.


Limited Company Information


Our website includes information on:

Limited Company Formation
Limited Company Accounts
Corporation Tax
Directors
Shareholders
Dividends
Self Assessment
Income Tax
IR35
VAT and VAT Flat Rate Scheme
PAYE Guide and Payroll Service & Software Options
CIS


Software & Apps


With the right software, a considerable amount of the accounting and administration burden can be eased.

The new breed of online accounting software, together with additional apps, are available on PC, Mac, tablet and smart phone, enabling online access to update your records, raise sales invoices, enter expense claims, check reports, file VAT Returns and manage PAYE/Payroll.

We support both FreeAgent and QuickBooks Online

Thanks for visiting.
If you need further help
please call us:
01772 611432
8:00am to 8:00pm





Our Typical Monthly Fees for a Limited Company

Estimate based on one Shareholder / Director


Typical Monthly Fees

Net
£

VAT
£

Gross
£

Statutory Accounts & Corporation Tax
 Preparation and filing

PAYE / Payroll
 Monthly RTI
 Final Y/E submission
 One person

Dividend Accounting & Legal
 Completion of Dividend
 and legal requirements

Self Assessment
  Salary and Dividend
  Planning (note 1)

Bookkeeping Support
 Bookkeeping support
 for our free spreadsheet

TOTAL BASIC
MONTHLY PACKAGE


Note 1: Based on
Single shareholder/director
UK Tax Returns






















80.00






















16.00






















96.00
Additional Director / Shareholder
30.00

  6.00

36.00
VAT
 Support & submissions

20.00

  4.00

24.00
Online Software
 From

10.00

  2.00

12.00
Additional Bookkeeping Services
 From (per hour)


10.00


  2.00


12.00