Contracting can be quite different compared to full-time employment, especially when it comes to the end of the month and you’re looking towards your bank account for payment. Since contracting can be different month to month, you are never 100% sure of how much you’re going to get. Making it quite difficult to plan for the future when you don’t have consistent income or work. This is where specialist contractor accountants come into the equation, as they’ll be with you step-by-step to help you throughout your contracting career.
Take a look at how a specialist contractor accountant like Brookson can help you as a contractor, either with day-to-day or monthly assistance.
Maximising Take-Home Pay
Finding a way to maximise your take-home pay is most likely one of your main aims. Who doesn’t want to make the most money they can? But many people do so without full-knowledge of how to accomplish this. Going it alone can actually decrease your take-home pay if not done correctly.
A specialist contractor accountant has years of knowledge and experience in contracting and contracting law. This gives their clients the best chance of sorting out their financials while abiding by the law.
Working alongside you, a specialist contractor accountant can look at a variety of options available to you and your unique situation. Options such as:
- Setting up your own limited company
- Becoming an employee of an umbrella company
- Working as a sole trader
- Agency PAYE
They all have their advantages and disadvantages, and many contractors have their own preferences. It’s vital you take time to evaluate all of your options, as they’ll have a big effect on how you work as a contractor and how you’re paid.
A specialist contractor accountant can guide you through this process and help you set up whichever option you choose. This knowledge and advice is invaluable at this stage of contracting.
While this only applies if you’re setting up your own limited company, it’s still important to be aware of it, in case you need this knowledge in the future.
IR35 is tax legislation that was brought about by HMRC to tackle ‘disguised employment’, where a contractor would work for a client in a way where they are essentially a full-time employee of that client, yet gain the financial benefits of working as a contractor. If caught doing this, even accidentally, you face losing your contracting tax benefits all together, giving you a large decrease in your monthly take-home pay.
A specialist contractor accountant would have full knowledge and understanding of IR35, how it works, and always keep up on updates to the legislation. They’ll be able to advise you at every step, and ensure that the contracts you undertake don’t accidentally get flagged by IR35. High-street accountants will not have this specialist knowledge, so you risk being fined at a later date.
When working as a contractor, it’s essential that you’re supported every step of the way, as you never know what’s going to be thrown your way. Every contract is different, so you can’t approach it with the same outlook in every situation. You may need access to professional advice pretty much every day as a contract worker.
Many specialist contractor accountants, such as Brookson, provide 6 days a week support, no matter where you are, on any device. This flexibility is so valuable in the contracting world, as you may need instant advice and support on an urgent issue that just can’t wait. You won’t find that value elsewhere.
Get in touch with a specialist contractor accountant to find out more on how they can help you!