Duties of a Specialist Contractor Accountant in the UK

by Shams Urrehman Accounting Services

A lack of accounting knowledge will result in accounting errors that could cost you a lot of money if you want to perform all your accounting and tax related work by yourself.  By hiring an accountant who will ensure that all the financial and tax-related obligations are met without error, you are free to focus on making your business venture a success.

The Accountant for IT Contractor England will shape their services to suit your specific business needs. They will leave you free to build your business in confidence by taking care of VAT, annual tax returns, and personal tax returns.  Before hiring an accountant, you should confirm what services they will offer you. Some of the typical duties of an accountant for limited companies in the UK are briefly discussed below.

Year-end accounts

In order to avoid a tax audit, there are some year-end accounts that you need to file and submit to Her Majesty's Revenue and Customs (HMRC).

ü  Accountants will submit your annual accounts to Companies House.

ü  The full accounts of your company will also be submitted to HMRC.

ü  The corporation tax owed by your company will also be paid by an accountant.

VAT returns

Your accountant will complete your quarterly Valued Added Tax (VAT) returns and submit them to HMRC if you are registered for VAT (most limited companies in the UK are registered by VAT). Based on their detailed understanding of UK tax laws, your accountants will be able to advise you if you should switch to the flat rate VAT scheme or not.

Payroll

Your experienced accountant will deal with all your National Insurance (NIC) and PAYE paperwork. They (your accountant) will provide you with a monthly payslip that sets out the net salary of your current employees following deductions for NICs and PAYE.

All the payroll data is communicated directly to HMRC through real-time reporting by the accountant. Forms such as P60 and P11D are also required to submit by accountants. P60 is an end of tax year certificate which contains details of total payment given to each employee including PAYE tax and national insurance deduction. P11D contains the cash value of all the benefits that you may have provided to each employee during the last financial (tax) year.

Corporation tax

Your corporation tax liability will be calculated and submitted to HMRC by the accountant after each financial year. The current corporation tax rate paid by limited companies in the UK is 19%. It will decrease to 18% in the year 2020.

Self-assessment

Your self-assessment returns each year will be prepared by the accountant. The deadline for submission of self-assessment return for limited companies is 31st January.

Correspondence

The accountant will deal with any correspondence between your company and HMRC.

Additional services

You should expect an accountant to advise you on tax legislation such as the notorious IR35 legislation. Some accountants provide a “contract review” services to their client in order to ensure that their clients are not caught violating rules made by IR35.  Your accountant will also set up a business bank account if you don’t have one.  To avail these services, you may need to pay additional payment to the accountant.

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Created on Nov 27th 2017 23:16. Viewed 666 times.

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