Contractors who have to deal with a limited company usually run their contractor accounting themselves but the entire administrative burden devours lot of time leaving very little time for tax planning and tax affairs. Hence, most of them prefer contractor accountants who are meant to offer quality accountancy services. Now if one dreams of establishing a limited company, the most significant adviser one could hope to have is an IT contractor accountant. But before selecting an accountant, his/her proficiency in the field of contractor accountancy must be clarified exactly. An expert accountant would invariably understand payment cycle works, and the ins and outs of specific tax legislation, such as IR35, Managed Service Companies, and the Agency Workers Regulations.
Most of them charge a fixed monthly fee that varies from one provider to another. Hence, a comparative survey must be done while selecting an appropriate it contractor accountant. Often an initial set up fee is taken inclusive of costs of registering the limited company with Companies House and some preliminary management work. It has to be made sure that the firm is duly recognized by one of the professional accountancy bodies like ICAEW (Chartered Accountants), or ACCA (Certified Accountants), or ICAS in Scotland. The mandatory feature that it contractor accountants have to maintain are indispensable online facilities. They provide 24 hours online services permitting one to have a glance at the latest accounts; submit expenses and do paperwork online.
The requisite Intermediaries Legislation (IR35) expertise of it contractor accountants have to be made lucid rightfully. As there is an immense disparity in take home pay between those caught by the IR35 rules, and those who are not. While selecting a particular firm it has to be checked if the firm offers bolt-on services from professional protection and business accountability insurance cover, to liberated IR35 contract reviews. The credentials from existing clients of that particular firm need to be elucidated.