What Contractor Accountants Do

As the name indicates contractor accountants specialise in doing the accounts of those people who work as contractors or freelancers. To most people the idea that contractors need an accountant with specialist skills seems odd. This is because many people assume that someone who is a self-employed contractor is the same as someone who runs a small business. However, the reality is from a tax point of view the two sets of people are very different.

There is a whole set of different laws that apply to contractors and freelancers who provide services to other companies. Of course, there are also similarities, but the differences are important. How a contractor’s accounts are drawn up has a very big impact on how much money they take home at the end of the month.

In fact, it can even have an impact on how much work they are offered. An employer who wants a temporary worker quickly loses interest when the taxman starts saying that the contractor they are employing is, in the eyes of a taxman, an employee. This is because when that happens the employer is liable to pay more tax. A good contractor accountant knows how to make sure that this does not happen and advice their clients how to avoid this scenario.

Finding Good Contractor Accountants

A few accountants out there claim to be contractor accountants, when in fact they do not have a clue about contractor tax law. For this reason, it is important to shop around and find one who knows what they are doing.

Before going out to find one go online and read up about contractor employment law. Pay particular attention to the IR35 regulations. A reasonable understanding of these things will help you to spot which contractor accountants know what they are talking about and which do not. Speak to at least 2 accountants about your personal work circumstances and look for firms that are well established. Those accountants that have been working with freelancers and contractors for some time are the best ones for you to use.

Beevers and Struthers are specialist freelancer and contractor accountants. They have decades of experience, so give the best advice.