With a new government promising a major overhaul of tax regulations, the jobbing IT contractor is in the midst of uncertain, although hopefully beneficial times. All the more reason to make sure that your accounts are in good order. Here are some guidelines which may serve you well in your quest to find a good contractor accountant.
If you can, approach an accountant recommended by an established IT contractor – accountants are a very diverse breed and it’s essential that you get one who has experience with IT contracting. You should also be sure that your prospective accountant is fully qualified (look for qualifications on the company website or promotional materials – the letters to watch out for represent the bodies which accredit the profession, like the ACCA, ICAEW, CCAB and, in Scotland, the ICAS). Check the fees next, comparing several firms: you shouldn’t have to part with more than £100 per month (although some accountants charge by the hour and others have an annual fee). It’s also perfectly acceptable to ask to speak to existing contractor clients before you sign up (a good firm will be confident of getting a good report).
Last but not least, check the services the accountant provides. Are they fully aware of all the ramifications of IR35? Will they complete your annual self-assessment return and any quarterly VAT returns? Will they process the key payroll forms where relevant (P35, P11D, P60), or your PAYE and National Insurance paperwork? You should expect all of these in the service. And remember, contractor mortgages and other contractor finances will be a lot easier to secure if you can demonstrate that your accounts have been professionally processed.
