Contractor Accountants

Accountants for Contractors

Whether you’re a self-employed freelancer or an agency contractor in the Sheffield region, you’re probably looking for contractor accountancy services with a dedicated accountant who understands your specific needs.

Our contractor accountants have extensive expertise providing personalised services, tailored to the unique needs of freelancers and contractors.

IR35 Specialist Contractor Accountants

Getting to grips with the implications of IR35, and the self employed/employed debate can be daunting, and you may worry it could leave you open to a negative response from HM Revenue and Customs. From IR35 advice to tax planning for contractors, we could help you get your accounts in order and protect you from an HMRC investigation.

Our contractor accountancy services ensure that you remain compliant with all IR35 regulations, avoiding any potential penalties, and streamline the submission of your annual accounts.

As Chartered contractor accountants, our experience comes in understanding how HMRC are may interpret the rules in your individual case and ensuring that your affairs are presented in a way that maximises your income while minimising your tax liabilities.

We guarantee transparency with no hidden costs, so you know exactly what you’re paying for.

This area can be complex, engaging a professional can save many hours, frustration, and a considerable amount of tax, eliminating the hassle of managing complex tax rules on your own.

Our experienced contractor accountants can provide a range of services that will put you on the right footing and ensure that your affairs are always in order. Our contractor payroll administrators could help you save money and time, and reduce your risk of late payment. Managing every possible expense is crucial to stay compliant and maximise your tax efficiency.

Having a specialised contractor accountant provides added peace of mind by ensuring compliance with tax laws and optimising payment structures.

IR35 changes repealed

If you work as a contractor, or your own business employs contractors, you will almost certainly have heard of IR35, or Intermediaries Legislation. Understanding this complex piece of tax legislation, on the other hand, is easier said than done, and recent changes have only made it more complicated.

Our accountancy services are designed to help you navigate these changes smoothly and ensure compliance. These services support businesses in navigating the changes to IR35 smoothly. It is crucial to contact your contractor accountant to navigate these changes smoothly.

What is IR35?

IR35 refers to the government’s anti-avoidance tax rules that aim to fairly tax ‘disguised employment’, i.e. contractors working off payroll through an ‘intermediary’, such as a limited company. IR35 applies if the contractor would effectively be employed by their client if it weren’t for the intermediary.

Contracting can be complex, and understanding IR35 is crucial for compliance and financial management. By understanding IR35, contractors can focus on compliance and financial management, ensuring they meet all legal requirements. Off payroll working rules were first introduced in 2000 to tax contractors similarly to employed workers, removing any incentive to register falsely as a contractor in order to avoid tax.

If you’re deemed to be inside IR35, you’ll pay the same PAYE tax as an ordinary employee. Complete and accurate tax return filings are crucial to ensure compliance with IR35 regulations while also being tax efficient.

IR35 in the Public Sector

HMRC made changes to IR35 for the public sector in 2017, placing the responsibility for determining whether a contractor came under IR35 or not on the public sector authority.

To assist with this, HMRC created a tool to help public authorities make the decision quickly and easily, called Check Employment Status for Tax (CEST).

Effectively managing your finances can provide peace of mind for public sector authorities, ensuring that all financial obligations are handled smoothly and efficiently.

Using a registered office address can enhance professionalism for contractors, protect personal information, and manage important correspondence efficiently.

Since April 2021, public sector authorities have had extra responsibilities for remaining IR35 compliant. In addition to deciding the employment status of your workers:

• You will have to provide your determination and the reasons for it to the worker and the person or organisation you contract with;

• You’ll also have to keep detailed records of your employment status determinations, including the reasons and any fees paid;

• And you’ll need to have processes in place to deal with any disagreements that arise from your determinations, responding within the time limit of 45 days.

Our services are tailored to meet the specific accounting needs of public sector authorities, ensuring compliance and efficiency, including face to face meetings to provide personalised interaction and support. Our team of specialised contractor accountants provide comprehensive support to ensure compliance with IR35 requirements.

Failure to comply will result in the worker’s tax and National Insurance contributions (NICs) becoming your responsibility, so it’s essential you stay on top of your IR35 requirements.

These changes are in the process of being repealed and will no longer apply from April 2023, but it’s important to remain compliant until then.

IR35 Changes in the Private Sector

Currently, if you work off payroll in the private sector, the intermediary is required to make an extra payment to compensate for the additional tax and NI that HMRC would have received on an equivalent employee’s wages.

However, new IR35 rules came into effect in April 2021, bringing the private sector in line with the public sector and taking the pressure off individual contractors. These IR35 legislation changes mean that from 6 April 2021, all public authorities and medium and large sized private sector clients are responsible for deciding the employment status of workers.

We offer extra services such as bookkeeping, payroll management, and the preparation and submission of quarterly VAT returns to support your business needs. Our services are specifically designed to assist small businesses in managing their accounting needs and ensuring compliance with IR35 regulations.

Having a dedicated contractor accountant can help manage business operations and ensure compliance with these regulations, providing tailored advice and support throughout the year, including essential business insurance.

CEST and IR35

CEST stands for Check Employment Status for Tax, and refers to the government’s digital tool allowing workers, employers and public authorities to assess whether an individual falls inside or outside the scope of IR35. It consists of a simple questionnaire and can be used for both public sector and private sector contractors, making it easy for both employers and contractors to identify their position with regard to IR35 and tax.

Understanding your take home pay is crucial for financial planning, and our tools can help you estimate your net earnings accurately. Additionally, our user-friendly portal allows clients to manage administrative tasks like creating invoices, streamlining the contractor accountancy process.

Accurate filing of tax documents is essential to ensure compliance and avoid any potential penalties. Effectively managing your tax bill can lead to significant savings by claiming all eligible deductions and avoiding overpayment.

If you’re a contractor or employer in the construction industry, download our factsheet Construction Industry Scheme Update.

Having a personal accountant to assist with these filings can greatly enhance your overall experience and ensure timely submissions. Understanding your salary in relation to tax efficiency is vital for optimising take-home pay and complying with tax laws.