Why Choose AK Tax As Your Contractor Accountant?

account manager
Dedicated account manager
pile of coins
Fixed monthly cost
till icon
Straightforward Advice
pound in the hand
Pay Less Tax
greek building
Excellent Customer Service
online accounts
Online Accounts

Accounting for Contractors

The contractor and freelancing industry is booming in Kent, adding a big boost to our local economy. The South East is the top location in the UK for contracting, making up over 20% of the UK total. With easy access to London and excellent links to Europe, Kent is a great place to be a contractor.

As more and more companies look to contractors and freelancers with specific skills the contractor model is becoming increasingly attractive. Contractors enjoy increased freedom and variety of roles as well as all the benefits of being your own boss.

With a wealth of projects and businesses across Kent and the South East region that require contract workers, our specialist contractor accountants focus on advising UK contractors and freelancers.

We advise contractors from a range of industries and roles including:

tick IT, Technology & Software
tick Finance & Business Analyst
tick Project & Programme Management
tick Engineering, Construction & Trades
tick Web Designers & Developers
tick Nurses & Doctors

Get in touch

Want to find out how we can help?

01634 540 040

Book a free consultation

slice

Contractor Accountancy Packages

We understand how busy life can be as a contractor or freelancer. That’s why we have created a bespoke contractor service where we provide everything you need so that you can focus on running your business.

AK Startup+

AK Contractor Plus

Expert Accounting Services For Contractors & Freelancers

£129 + VAT

Learn more

Our Contractor & Freelancer Accountancy Services

We take care of all of your specialist contractor & freelancer requirements.

Management reporting
Limited company formation
Monthly payroll
IR35 Advice
Accounts and year-end tax returns
Contractor Accounting & Tax Advice
slice

What Our Clients Say

  • I was looking for a firm of accountants who use Xero as I needed all the facilities it offers. Andy at AK Tax is a great guy and he made the whole process really simple. I really like the fixed fee packages as it means I know what my outgoings are each month. Even though they're based in Kent working with my accountant online is easy and I'm always up-to-date with how the business is performing.

    Paul Morris Avatar Paul Morris

    Left it a bit late with my accounts and tax return, but I got a quick appointment and they managed to get it all sorted out in time. Thanks guys.

    Amy Smith Avatar Amy Smith

    AK Tax are a fantastic company that I wish we'd found years ago. As a small business, we do the reconciling and basic things ourselves, so it's really helpful to have a low cost accountant to check things over and answer any questions we've got. Really good service and value!

    Perry Coppen Avatar Perry Coppen
  • Medfab Ltd have been working with Andy for 2 years now, the service and expertise is 2nd to none. I have had other accountants in the past that came highly recommended but are nowhere in the slightest to the calibre you receive fr AK Tax and accountancy. regards Kevin Harris Medfab ltd Managing Director,

    stephen Nichols Avatar stephen Nichols

    We need hands-on accountants who can help us out with the many accounting and tax issues involved in our import/export activities. AK Tax & Accountancy have always helped us get our business affairs sorted out in a fast, professional and friendly manner. We highly recommend the AK Tax and Accountancy team.

    darren fosbury Avatar darren fosbury

    After sitting with several accountants I engaged with Andy & AK Tax and Accountancy to help start our company and look after the accounts. I found Andy to have a welcoming and approachable demeanour which was strengthened by the professional service we received from him and his staff. A professional and reliable service for a reasonable price. If you're in the market for a new accountancy firm or just starting out with your business, then give these guys a call.

    Daniel Jordan Avatar Daniel Jordan

Accountancy services for contractors

Limited company set up and advice

Once you have decided that contracting is the right long term option, operating your contract business via a limited company is the best option for most contractors. It gives you control over your business finances and is more advantageous for tax purposes. Before you begin trading as a limited company you will need to:

  • Form your limited company. To set up a limited company it must first be “incorporated” by registering it with Companies House. We can help you decide on an appropriate name for your company, register it with Companies House as well as prepare and send your annual accounts to them.
  • Open a dedicated business bank account in the name of your company. We’ll help you decide which business account is best for your company. Banks and building societies usually charge fees for business banking, we can provide independent advice to ensure you get the best deal.
  • Decide on the best VAT position. We can advise on whether to join the flat rate VAT scheme. This is a scheme set up by HMRC to make it easier for contractors to charge and collect VAT. Depending on your industry it may be advantageous for you to join because you will charge your clients at the flat rate of 20% and may pay at a lower rate, for example, IT and software consultants pay 14.5% giving them a net benefit of 5.5%. Check the rates for your industry here.
  • Register for PAYE – most limited company contractors will want to pay themselves small salaries taxed via the PAYE system with the bulk of income being drawn from dividends. However, as an employee of the company you need to account for PAYE and National Insurance due to HMRC each month.
  • Set up Professional Indemnity Insurance – this is vital for contractors that offer advice or professional services to their clients. It is designed to cover any potential losses caused by faulty advice made to the client.
  • Invoice Clients and Record Expenses – this is where it gets exciting, getting paid for the work that you do! In order to make sure you get paid everything that is due you need to keep accurate records of invoices charged to your clients and the expenses that you claim. We use these to prepare your annual accounts and VAT returns.

Invoice and expense records

IR35 advice

IR35 legislation was brought in by the government to prevent employers from using limited company contractors in roles that were essentially the same as full time positions. Both employers and contractors would benefit by avoiding having to pay income taxes and national insurance.

As a contractor, understanding whether you fall inside or outside IR35 can be complicated. We will help make sure you stay on the right side of the legislation. This can mean the difference between paying significantly more tax as a ‘disguised employee’ or realising the tax efficiency benefits of operating as a limited company.

Contractor accounting and tax advice

Our team of contractor specialists will save you time so that you can focus on the work that you do best. Our service includes:

  • Monthly payroll and Real Time Information (RTI) submissions
  • Management of invoices and expenses using Xero
  • Tax efficient advice on how much to pay yourself each month
  • Quarterly VAT returns, annual accounts and corporation tax return
  • Self Assessment tax returns

Construction Industry Scheme (CIS)

Anyone who uses subcontractors for construction work within the property sector must register as a contractor with HMRC. As a contractor, it is your responsibility to collect taxes from your subcontractors and ensure that the right amount is paid to HMRC. You are also required to complete monthly returns showing which subcontractors have worked for you during the month and any payments you have made. All of which can add a considerable burden to your business. We can help with :

  • CIS registration
  • Monthly CIS returns
  • Annual CIS reporting
  • CIS disputes and penalties
  • Rebates relating to CIS

man building a house

Explore our latest blogs

Cloud Accounting Solutions for SMEs: Streamlining Financial Management

Did you know that more than 35% of businesses in Europe are using cloud-based accounting solutions? But what exactly is cloud-based accounting and how could it help you to streamline your financial management processes? An Introduction to Cloud Accounting Also sometimes known as online accounting, cloud accounting is a financial information management system that takes […]

Read more

Understanding the Accounts – A Beginner’s Guide

Financial statements are important for understanding a company’s financial health. In the UK, they follow strict rules, often based on International Financial Reporting Standards (IFRS). This can make them look a bit confusing if you’re not used to them.  But have no fear – for beginners, this guide will help you understand the basic parts […]

Read more

Why Change Accountants?

Changing accountants is a significant decision for any business or individual. Your accountant handles crucial financial matters like taxes and long-term planning. Trust is key in this relationship, but there are many reasons you might consider switching accountants. Whether it’s due to evolving business needs or dissatisfaction with current services, here’s why people often make […]

Read more

Read more from our blog

Top

Get in touch

Please complete the form and we'll be in touch as soon as possible.

    Get in touch

    Whether you’re starting up or you’re an established business, we’ll make your work with us as easy as humanly possible – starting from the time you get in touch. Just call us on 01634 540040 or complete the form below and we’ll get back to you ASAP.