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Contractor Accountants
Fixed fee, online accountants for limited company and IR35 contractors
We run your limited company's accounts, payroll and Corporation Tax, plan your salary and dividends for the current tax year, and help you understand where you stand on IR35. One agreed monthly fee, with a qualified accountant who understands contracting.
- Company accounts and tax
- Salary and dividend planning
- IR35 guidance
- Switch mid-contract
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In short
What do contractor accountants do?
Contractor accountants look after the finances of people who work through their own limited company. They prepare company accounts and the Corporation Tax return, run director payroll, plan the most tax-efficient mix of salary and dividends, handle VAT and your personal Self Assessment, and help you understand how IR35 affects each contract.
- Company accountsYear-end accounts and CT600 filed on time
- Pay planningSalary and dividends set for current rates
- IR35What your status means for your take-home pay
- Personal taxYour Self Assessment, including dividends
Limited company or umbrella company?
Most contractors choose between running their own limited company and being paid through an umbrella. Here's how they compare.
| Question | Limited company | Umbrella company |
|---|---|---|
| How you're paid | Your company invoices the client, then pays you salary and dividends | The umbrella employs you and pays you through PAYE |
| Best suited to | Contracts outside IR35 and longer-term contracting | Inside IR35 roles and short or occasional contracts |
| Take-home pay outside IR35 | Usually higher, thanks to salary and dividend planning | Lower, as all pay is taxed as employment income |
| Admin | Company accounts and returns, which we handle for you | Minimal, handled by the umbrella |
| Control | You control your company, pension and expenses | The umbrella controls payroll and deductions |
Thinking of setting up a company? We offer free company formation for new contractors.
See contractor pricing
Our contractor packages are set out clearly on one page, so you can compare before you speak to us.
IR35 explained
IR35, also called the off-payroll working rules, decides whether a contractor should be taxed like an employee. It depends on how you actually work, not just what your contract says. Who decides your status depends on the size of your client.
Medium or large private sector and public sector clients
- The client decides your status and gives you a Status Determination Statement
- If you're inside IR35, the fee-payer deducts tax and National Insurance before paying your company
- You can challenge a determination you disagree with
Small private sector clients
- Your own company decides whether IR35 applies
- If it does, a deemed payment calculation is made at the end of the tax year
- Keeping evidence of how you work is important
We'll explain what your status means for your take-home pay and help you set up your pay correctly for inside and outside IR35 contracts. Source: GOV.UK off-payroll working.
What's included for contractors
Everything your limited company needs, covered by one fixed monthly fee agreed before we start.
Company accounts and Corporation Tax
Year-end accounts filed with Companies House and your CT600 with HMRC.
Director payroll
Your salary set at the right level and RTI submissions sent to HMRC.
Personal tax return
Your Self Assessment, including dividends and any other income.
VAT returns
Registration, choosing the right VAT scheme and quarterly returns.
Bookkeeping
Invoices, expenses and bank feeds kept up to date in cloud software.
Company set-up
Your limited company registered and ready for your first contract.
Key figures for contractors in 2026/27
The rates that shape how much you take home from your limited company.
Dividend tax
Rates for the basic and higher rate bands. The additional rate is 39.35%, and the first £500 of dividends is tax-free.
Corporation Tax
19% on profits up to £50,000 and 25% above £250,000, with marginal relief in between.
Employer's National Insurance
Paid by your company on salary above £5,000 a year.
Employment Allowance
Companies where the director is the only employee can't claim it, which affects the best salary level.
Flat Rate VAT for limited cost traders
Many contractors spend little on goods, so the Flat Rate Scheme is often less useful than it appears.
Travel expenses
Travel to a temporary workplace can usually be claimed if you expect to work there for 24 months or less, and you're outside IR35.
Sources: GOV.UK tax on dividends, GOV.UK Corporation Tax rates, GOV.UK Employment Allowance, GOV.UK Flat Rate Scheme.
Contractors we work with
As an accountant for contractors, most of our clients work in IT, engineering, consulting and project delivery.
- IT Developers
- Software Developers
- Data Engineers
- Solution Architects
- Technical Architects
- Network Engineers
- Test Leads
- Business Analysts
- IT Project Managers
- Delivery Managers
- Management Consultants
- Engineers
- Structural Engineers
- Civil Engineers
- Quantity Surveyors
- Health and Safety Advisers
Working in construction as a subcontractor? You may be paid under the Construction Industry Scheme instead. Working freelance on shorter projects? See accountant for freelancers.
Fixed fee contractor accountants
Contracts come and go, but your accountancy fee stays the same. As fixed fee contractor accountants, we agree one monthly price before we start, so questions about a new contract or a change in IR35 status never add to your bill.
- One monthly fee for your company
- No charge for questions
- Price agreed before we start
Online contractor accountants
You might be on site in Manchester one month and remote the next. As online contractor accountants, we work with you by phone, email and video, and connect to your bank and accounting software wherever your contract takes you.
- Bank feeds and invoicing connected
- Open weekday evenings and Saturdays
- Support anywhere in the UK
Switch mid-contract, with no disruption
You can move to us at any point in your company's year. We contact your current accountant and take care of the handover.
Contractor FAQs
Do contractors need an accountant?
If you contract through your own limited company, an accountant is strongly recommended. Your company must file annual accounts with Companies House and a Corporation Tax return with HMRC, run payroll and keep proper records, and you'll need a personal tax return for your dividends. A contractor accountant handles all of this and plans your pay to reduce tax.
Should I use a limited company or an umbrella company?
A limited company usually gives better take-home pay for contracts outside IR35 and suits longer-term contracting. An umbrella company is often simpler for inside IR35 roles or short, occasional contracts. We'll compare both based on your day rate and contract.
What is IR35?
IR35, also called the off-payroll working rules, is legislation that decides whether a contractor working through their own company should be taxed like an employee. For medium and large clients, the client decides your status. For small private sector clients, your own company decides.
What happens if my contract is inside IR35?
If a medium or large client decides your contract is inside IR35, the fee-payer deducts Income Tax and National Insurance before paying your company. You can't pay yourself through dividends from that income in the usual way, and some expenses, such as travel, can't be claimed. We'll show you how to handle this in your company's accounts.
How should I pay myself from my limited company?
Most contractor directors take a modest salary and the rest as dividends. Dividend tax is currently 10.75% in the basic rate band and 35.75% in the higher rate band, so the right mix matters. The best salary level also depends on whether your company can claim the Employment Allowance, which single-director companies can't.
Can contractors claim travel expenses?
If you're outside IR35, you can usually claim travel to a temporary workplace where you expect to work for 24 months or less. If a contract is inside IR35, home-to-work travel generally can't be claimed.
Is the Flat Rate VAT Scheme worth it for contractors?
Often not. Many contractors spend very little on goods, which makes them a limited cost trader with a flat rate of 16.5%. At that rate the scheme usually offers little or no saving compared with standard VAT accounting. We'll check which scheme suits you.
How much do contractor accountants cost?
Costs vary with how many contracts and transactions you have, whether you're VAT registered and which services you need. We charge one fixed monthly fee, agreed before we start. You can compare packages on our contractor pricing page.
Talk to our contractor accountants
Tell us about your contract and we'll confirm your fixed monthly fee, with no obligation.