Why Do Contractors Need Specialist Accountants?

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Being a self-employed contractor has many advantages over being a full-time employee at a regular company. Increased pay, being your own boss, manage your own time and countless others, it’s hard to find reasons why you wouldn’t start contracting right now.

The main downside when immediately transferring to contracting is the financial side. With the majority of self-employed contractors having skills in many industries, most don’t have much financial knowledge when it comes to a limited or umbrella company. So the thought of managing their own finances can be quite daunting, this is where specialist accountants can help.

Brookson take a look at why specialist accountants are needed and why you should use their services.

Taxes

All accountants have access to the current law legislation but without a specialised accountant or accountancy service then you’ll be unsure if the laws that apply to you will be focused on. Taxes such as IR35, that specifically applies to contractors, freelancers and the self-employed, is there to ensure that ‘disguised employment’ is taxed at the same rate. Whether this affects you or not it still will have a considerable effect on your take home pay.

Only with a specialist accountant will you be guaranteed that these types of laws are followed to the letter and when it comes to the end of the financial year that you’re fully covered and prepared. Specialist accountants such as Brooksons will ensure you have everything ready to comply with IR35, leaving you time to focus on other aspects of your work.

Knowledge

Specialist accountants have vast amount of knowledge in the industry and sectors that they operate. Extremely useful when you’re in need of an accountant with specific knowledge in financial laws relating to you as a contractor.

A specialist accountant will already know the procedures on how contractor’s accounts are typical run so can offer advice straight away. Along with what kind of transactions are made and which expenses that are likely to be reimbursed. They’re also well aware of the lifestyle of a typical contractor and the gaps in income that usually come with it.

Rather than using a general accountant that might not understand a contractor’s way of life, stick with a specialist accountant to ensure they’re looking out for what’s best for you.

Advantages

Some advantages that are specifically related to specialist accountants would be that many leading accountants offer easy to use online systems, where you can check everything relating to your finance in one easy click, on several devices. This allows for a great amount of time saved between you and your accountant, gone are the days where you need to send off bundles of paper via post and wait weeks for a response.

If you’re worried about security, then worry no longer, as the majority of the leading specialist accountants provide top tier security to ensure that the information is only viewed by you and your accountant.

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