Choosing the Right Professional Advisor

As an Independent Freelance Contractor, you have the options of running your own Limited Company, or working as a Self-Employed Sole Trader, both of these options mean that you will be running your own business. As with all small businesses you will need to ensure that you engage the services of a reputable Professional Advisor who is experienced in the field of contractor businesses.

To make sure that you get the best possible advice for you and your business, here are a few guidelines for choosing your small business accountant;

Professional Advisor - First and foremost, you should always engage a Specialist Contractor Accountant. This should be a company who has significant experience of dealing with Freelance Contractors, you can then be sure that they will have the level of understanding on the specific tax issues that affect you.

Fees - You should ensure that you receive the complete range of accountancy services required by your business and this should be included in the quoted fees, which should be a fixed monthly or annual amount. As a general rule of thumb like most things you get what you pay for, if the fees seem very low then it may mean that you will get a substandard service, conversely, if the fees are very high there should be a very good reason i.e. a high level of service or additional services included within the set fees. Be very careful if you are quoted a percentage of your turnover as a fee, why would the success of your business mean you have to pay more to your accountant?

Services - The services that you should be expecting from your Accountant should typically include; all dealings with the tax authorities, completion of Tax returns, PAYE, NI and Dividend calculations, and your year-end accounts. Always ensure that you know the services that you will be receiving from your Accountant before signing up.

Additional Services - Good Contractor Accountants should be able to offer you a package that includes things like IR35 advice, help with your Self Assessment Tax return and if you are new to your contractor business, they may also be able to set up a company for you, register you for VAT, and provide other advice and services to help you get started.

Legislation - Your Contractor Accountant should be able to explain the legislation affecting contractors such as IR35, Managed Service Companies and Section 660 - Income Shifting and the impact of these pieces of legislation on how you run your business and provide your services.

Which Accountant? - One of the best ways to find a good Contractor Accountant is via a recommendation from a contractor colleague or friend. Even so, many longer term contractors will have used a number of accountants in the past before finding the one that suits them best.

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