What Is A Contractor Accountant?

By Author: William Pollard
Total Articles: 156
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As the name suggests a contractor accountant is an accountant who specialises in taking care of accounts for people who work on a freelance or contract basis. These people need a specialist accountant who is familiar with the UK tax rules surrounding working for various firms on a temporary basis. Unfortunately, the tax system for such people is quite complex and it is very easy to get on the wrong side of the taxman without the help of an accountant who really knows what they are doing.

Do You Need a Contractor Accountant?

If you work for a firm and are part of the PAYE (Pay as You Earn) tax system, you do not need this kind of accountant. In fact, you really should not need the services of an accountant at all just the services of a financial advisor, on occasion, to manage your investments and pension.

However, if you work for yourself you may need a contractor accountant, but not necessarily. It depends on the nature of your work. If you are a sole trader who sells shirts to the public, you are not likely to need an accountant who understands the contractor and freelancer tax system. However, if you ...
... work as a rep for several shirt manufacturers on temporary contracts helping them to launch new shirt lines as and when they produce them you are working for them as a contractor or freelancer, so need a contractor accountant.

How a Contractor Accountant Can Help You

As well as providing, you with simple bookkeeping services to work out how much profit you have made freelancer accountants offer other services. These additional services are vital if you want to avoid paying too much tax.

If you work as a contractor, you pay less tax than you do under PAYE scheme. However, if you work for some firms on a regular basis the taxman could assume that you are an employee rather than a contractor and charge you PAYE tax as a result. A good contractor accountant can ensure that you avoid this situation and pay as little tax as possible.

If you are looking for a contractor accountant take a look at the service Freelancers and Contractors have to offer. We have the necessary experience to keep your tax bill under control.