Contractors

Contractors are individuals providing services either as a self-employed or through a limited company. They work on a temporary or contract basis for their clients, as opposed to working on a permanent basis as an employee of a single company.

There are around two million people working in the UK as a freelancer in almost all major sectors of the economy. Freelancers are involved in a variety of jobs such as investment banker, financial analyst, locum, IT professionals, project managers, engineering contractors, NHS contractors, artists, media etc.

We are specialist contractor accountants in London and Surrey providing services to freelancers working in various sectors. We are based in London and Surrey, but our clients are all around the UK. We provide our services to contractors and freelancers using specialist cloud based contractor accounting softwares such as Xero, Kashflow, QuickBooks, FreeAgents etc. This helps us to serve not only local clients but also all other parts in the UK.

What is a Freelancers ?

Freelancers are individuals providing services either as a self-employed or through a limited company. They work on temporary or contract basis for their clients, as opposed to working on a permanent basis as an employee for a single company.
There are around two million people working in the UK as a freelancer in almost all major sectors of the economy. Freelancers are involved in a variety of jobs such as investment banker, financial analysist, locum, IT professionals, project managers, engineering contractors, NHS contractors, artists, media etc.

What tax do freelancers pay?

Sole Trader
If you are working as a sole trader contractor, you may be liable for the following:

  • Income tax
  • Class 2 National Insurance
  • Class 4 National Insurance

Please visit our sole traders page for the rates applicable to sole traders.

Limited Company

If you are working as a limited company, your company may be liable for the following taxes:

• Corporation Tax: Your company will be required to pay corporation tax on its taxable profits at the current rates applicable. The taxable profits are calculated by deducting all allowable expenses from the gross income of the company.
• PAYE and NIC: If you are withdrawing salary from your company above a certain threshold, there may be some income tax and national insurance payable to HMRC.
• VAT: If your company has been registered for VAT, there may be VAT liability payable.

In addition to the above, you may be liable to pay tax on your dividends withdrawn from your company through the filing of your personal tax return.

As your specialist contractor accountants, our job is to ensure that there is a right tax strategy in place so that you can withdraw funds from your company in a most tax efficient manner. We will ensure that there is a right shareholding structure in place, right amounts of salary and dividends have been withdrawn from the company considering your other sources of income and higher rate tax threshold for the year.

How we can help you?

Whether you are working as a self-employed freelancer or a freelancer company director, we can help you:

  • Incorporation of your company with Companies House
  • Registration of your company with HMRC for corporation tax, PAYE and VAT (if required).
  • A tax strategy to withdraw funds from the company in a most tax efficient way
  • Best salary and dividend structure tailored to your circumstances
  • Fixed monthly fee starting from only £75 plus VAT for one director company
  • Register yourself with HMRC if you are working as a sole trader
  • Advise on claiming all the legitimate expenses to optimise tax savings
  • Complete your tax returns using HMRC approved software
  • Advise you on the tax to be payable to HMRC and when they are due.