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.

Introduction

Independent contractors have the dual role of meeting the demands of their assignments, 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 we can do it all for you.

Our services include 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.

Our 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, 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 Contractor 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.

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

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

Our Typical Monthly Fees for a Limited Company
We are not VAT registered

Estimate based on one Shareholder / Director

Typical Monthly Fees	Fee £
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) TOTAL BASIC MONTHLY PACKAGE Note 1: Based on Single shareholder/director UK Tax Returns	125.00
Additional Director / Shareholder	30.00
VAT  Support & submissions	30.00
Online Software  From	36.00
Additional Bookkeeping Services  From (per hour)	35.00