Financial advice for Contractors

Whether you are a client or not you can benefit from the advice below. Choosing a reliable and truly independent financial advisor needn’t be difficult.

If you’ve just become a contractor / freelancer or even been one for a while, there’s a good chance you will be earning more money than if you were a permanent employee, which after all is only fair bearing in mind the less secure nature of your profession.

Additionally, your finances are probably a little more complex, and whereas a permanent employee, whatever that means these days (I don’t think the term ‘permanent employee’ really exists anymore), you could probably benefit from the services of an Independent Financial Advisor (IFA).

Sitting down with an IFA makes all kinds of sense especially as a contractor or freelancer; they will review your current financial situation and help you to achieve the financial goals you have set yourself, whether that be to retire early, build a tax efficient nest egg or provide additional levels of security for yourself and your family.

Financial advice for contractors includes:

Contractor Pensions - did you know that if you have a limited company your company could be making pensions contributions on your behalf? Having your company pay into a pension can be a highly tax efficient way to make payments. You can invest money directly from the company bank account into your pension. By doing this you avoid paying the income tax you would have paid if the money went into your net salary. In addition you will reduce NI contributions. So for every £100 that is invested in your pension, you pay £46.20 and the taxman contributes up to £53.80.

However, something to watch out for is that not all pension companies can accept pension contributions from a company bank account; however an IFA will be able to guide you through this mine field.

They can also run illustrations to see if you are saving enough towards that golden day when you can sit back, relax and retire on that beautiful Caribbean island. Additionally, they will be able review how well your pension fund manager is performing against their peers. Remember just because a fund manager ‘was’ top quartile last year, it doesn’t mean they are still outperforming the market!

An IFA can also help with Life Cover, Income Replacement and Critical Illness Cover as well as other Investments and Savings Plans.

SJD Accountancy recommends Wardour Investments who support thousands of private clients and have over £150million of client funds under active management. They provide a strong, reliable and experienced service, if they didn’t we wouldn’t recommend then. SJD has over 13,000 clients so we really do have the pick of the bunch when it comes to who we recommend.

Wardour Investments aren’t tied to any financial institution so can therefore search the whole market to find the best product for you. Typically their fees are paid by whomever they recommend (fees are pretty standard across whoever they recommend) so you can be sure of receiving the best and most appropriate advice tailored meet your needs.

And remember you don’t even need to be a client of SJD to benefit from the advice of one of Wardour Investments IFAs.

If would like to have a chat with an IFA please 01753 279656 or send an email.

You may also find the follow guides and pages helpful:

SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's Largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
  • Money back service guarantee. All your Emails received by 4pm on any normal working day will be answered the same day. Should it be necessary to leave a telephone message it will be answered same day/following day latest or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee starting from £120 plus VAT per month. Check our packages for more detail.

If you have any questions about contracting or would like any further advice please call our new client services helpdesk on 01442 275789 or email: janice@sjdaccountancy.com. Our new client services helpdesk is open Monday to Friday (8am to 6pm).

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own Limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.