Our Accounting Services for Contractors
Working as a contractor is similar to being a freelancer. The main difference is that a freelancer will tend to work on a number of projects for several different clients at the same time. As a contractor, though, you will probably be contracted to one particular client for a specific period of time, or for the duration of a specific project.
Whether you are still mulling over whether to take your first step into contracting, you are looking to start afresh after leaving your previous job, or you have already decided that contracting is for you, there are some key decisions you need to make.
Deciding the Ways of Working
The first thing to do is decide how you want to work. There are three main options: setting up your own business, getting paid directly through a recruitment agency, or joining an umbrella company.
Increasingly, a lot of contractors go for the first option, but the decisions don’t end there! If you decide to set up your own business, the next thing is to decide how you want to go about it. The most common options are by setting yourself up as a limited company, or going it alone as a sole trader.
Deciding which option is best for you is entirely personal. There are tax advantages for higher earners if you go down the limited company route, as well as the credibility of being a company director, but there is more administration and bureaucracy to deal with, too.
The Pros & Cons
We can talk you through the pros and cons of all the options before you make a decision, to see which one best suits your circumstances. We will hold your hand throughout the process, giving you the information you need to make an informed decision. Whichever one you go for, you need to be happy that it is the best one for you.
We can also help you with any initial form-filling and administration, as well as helping you with related issues like tax, pensions planning and insurance.
If you choose to set up a limited company, one thing to be aware of is IR35 – what it means and how it may affect you. But again, no need to worry. Our team of IR35 specialists will only be too happy to guide you through this complex legislation, and we provide all our limited company customers with an IR35 Compliance Review as part of our standard services.
With Brookson by your side, you can be reassured that you will never be on your own when it comes to your finances, tax obligations or administrative responsibilities.