Useful tips for choosing the right accountant for IT contractor in London

As a busy IT contractor in London, you want to hire an experienced accountant to maximize your take home pay by effectively minimizing your tax burden all while staying compliant with HM revenue & custom’ legislation.  Yet many IT contractors in London find themselves unhappy with their current accountant. So how can you ensure choose the correct accountant from the start? If you are finding for a reputed accountant that specializes in contractor accounting in London, then there are a few things you must consider before you finally choose an Accountant for IT Contractor in London.

Look for a specialist

Unlike many accounting software packages and high-street accountants, contractor accountant better understand the tax rules for self-employed professionals. This means that a contractor accountant has the right knowledge for helping you minimize tax burden through strategic tax planning. 

They will also evaluate your precise needs and circumstances for helping you determine the best possible way for manage your finances, whether that means contracting as a sole trader, being the director of your own limited company, or working through an umbrella company in London. Your accountancy provider should have in-depth knowledge, understanding and experience on IR35, AWR, and income shifting being specialists in contractor accounting.

Fees

It is essential to understand that your accounting fees should be a fixed fee and should cover all the administrative dealings with the tax authorities. They should provide services such as tax returns, VAT registration, PAYE administration and year-end taxes of your accountant.  Before hiring an accountant, it is vital that your accountancy provider should clearly specific what is included in the service package.
Check their qualifications and accreditation before hiring them

If you want credibility, compliance, expertise and professionalism, it is essential that you select an accredited accountant in London with right knowledge and experience. When choosing your IT contractor accountant, you should check if the accountant has Chartered Institute of Management Accountants (CIMA), Association of Chartered Certified Accountants (ACCA), and association of accounting technicians (AAT).

Find out what other “value-added” services

Does the IT contractor accountant in London offer free limited company incorporation, free setup and help setting up your business account? It is essential to understand that these are added-value services that not every IT contractor accountant in the UK offers to limited company owners in London. As a part and parcel of their services, many established and well-known accountants in London offer their clients (limited company owners) likely include added-value services.  It is essential to understand that many accountants in the UK may charge a one-off fee of over £100 just for setting up with their services.

In addition they may charge additional amount for other added-services. It is better to clear with the accountant about the different additional services that he will offer with the complete package.

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