If you have started contracting using a limited company, or are on the brink of making this decision, you will need an accountant. As a contractor with a limited company, you will take on many responsibilities which can also bring the very real concern of making errors, resulting in unnecessary paperwork. For this reason, you need an accountant you can trust, who also knows the ins and outs of the structure of a limited company and what’s best for you.
Do this the right way and you could sit back and enjoy a higher return with no administrative stress. However, do it wrong and you could face a mountain of paperwork and even a fine.
Here at ICS, we believe that giving you all the necessary information means you can make your mind up for yourself with no pressure. So how do you go about choosing the right accountant for your limited company?
Is a Limited Company Right for You?
As a contractor you could take home much more of your income every month, however, it is important that you make the right decision to achieve this.
A limited company is often considered to be the most practical option if you are ‘outside IR35’. If you are ‘inside IR35’ it means that as a contractor you are liable for full PAYE and NIC’s, although, even if you are inside IR35, this doesn’t mean you can’t work through a limited company.
Many would question the benefits of a Personal Service Company (Limited Company) compared to an Umbrella Company, however, in many cases, you will take home a bigger proportion of your income than through an umbrella company.
The table below indicates the difference between the potential take-home amount from an umbrella company to a limited company and the savings you could benefit from.
Choosing the Right Experts
While many accountants will help you set up a limited company for a fee, they may not have the right knowledge to ensure you are compliant with the correct legislation, such as MSC and IR35 regulations.
While any qualified accountant can provide basic services, there are now many accountants working in various market sectors whose services will differ.
Take into consideration factors of costings, the size of the company and how much support you will receive compared with how much support you require. Some specialist firms vary in the number of clients they will work with, and the style of service will reflect this. You should decide what level of service would benefit you more.
If you choose the option of a limited company, you will have the make the decision to either do all the leg-work yourself or whether you would prefer working with an accountancy firm such as ICS Accounting Ltd.
While there are benefits of doing it alone, such as fewer overhead costs, you will have to take on the mundane and complicated processes and paperwork. Many contractors will choose to opt for working with an accountancy firm because it leaves them with more free time to focus on the important things in life – such as family life and the passion behind their work. No need to worry and stress about invoices, tax returns, insurance cover and IR35 when you have a team of qualified accountants and administrators to give you a helping hand.
If you value your time and you don’t want to spend your free time dealing with accounting, then working with an accountancy provider could be the perfect solution.
Why ICS Accounting Ltd?
Here at ICS, we lead our services with three guiding principles; trust, care and compliance. Our team of experts in employment and tax law includes a leading London QC, as well as regular contact with one of the ‘big four’ accountancy firms which ensures we are always up to date with current legislation.
We offer several inclusive services which you may not be offered elsewhere. This includes a free IR35 contract review as well as professional indemnity insurance cover. Unlike some providers, ICS is run by fully qualified accountants who have many years of experience within contractor marketplaces.
If you would like any more information or guidance regarding choosing a Limited Company Service, you can chat to our helpful team online at www.icsuk.com or call us for free on 0800 195 3750.
We want to provide you with all the information you require and all the right support in order for you to make the right decision as a contractor.
External Resources:
www.limitedcompanyhelp.com – Useful, independent advice for Limited Company directors including a guide on choosing the right accountant for your business.
