Contractor Accounting Services in the UK
Tailored Tax & Accounting Support for Self-Employed Professionals
Why Do Contractors Need Specialist Accounting Support?
Contractors operate as sole traders, limited companies, or through umbrella companies, each with unique tax and compliance requirements. MSA Accountants provides expert services to simplify your finances, ensuring tax efficiency, IR35 compliance, accurate filings, and financial clarity.
IR35 Status
Are you inside or outside IR35? Incorrect classification can lead to penalties.
Tax Efficiency
How do you structure income (salary vs. dividends) to reduce tax liability?
VAT Management
Should you register for VAT? What about the Flat Rate Scheme?
Expense Claims
What costs can you claim as business expenses?
How MSA Accountants Supports Contractors
Company Formation
Set up your limited company quickly and correctly.
IR35 Review
Ensure your contracts are IR35-compliant.
Tax Planning
Optimize salary and dividends to reduce tax.
VAT Registration & Filing
Including Flat Rate Scheme guidance.
Monthly Bookkeeping
Real-time tracking of income and expenses.
Self-Assessment Filing
Accurate and timely returns to avoid penalties.
What Tax Obligations Do Contractors Face?
| Tax Type | Who It Applies To | Key Considerations |
|---|---|---|
| Income Tax | Sole Traders & Ltd Co | Taxable on profits after expenses |
| Corporation Tax | Limited Companies | 25% on company profits (2024/25 tax year) |
| VAT | Turnover > £90,000 | Flat Rate Scheme can simplify VAT payments |
| National Insurance | Sole Traders & Ltd Co | Class 2 & 4 NICs for sole traders; PAYE for Ltd Co |
| Dividend Tax | Limited Companies | 8.75% basic, 33.75% higher rate |
| IR35 Compliance | All Contractors | Determines if you're taxed as an employee or business |
IR35 Guidance – Are You Inside or Outside?
IR35 determines whether you’re a genuine contractor (outside IR35) or working like an employee (inside IR35). MSA Accountants provides:
- Contract Reviews: Ensure contracts meet HMRC’s IR35 guidelines.
- Tax Planning: Structure income efficiently based on IR35 status.
- HMRC Dispute Support: Assistance if HMRC challenges your IR35 position.
💡 With correct structuring, you can reduce risk and retain more earnings.
IR35 Employment Status Checker
Why Choose MSA Accountants for Contractor Accounting?
Expertise
Specialist accountants for contractors.
Proactive Advice
Personalized strategies for tax efficiency.
Timely Filing
Avoid penalties with on-time submissions.
Trusted Support
Fully HMRC-compliant services.